Broadcom (AVGO) Eyes Major AI Growth in 2026; Analysts Raise PT Before Earnings

Broadcom Inc. (NASDAQ:AVGO) is one of AI stocks are making headlines on Wall Street. On November 25, Goldman Sachs reiterated the stock as a “Buy” and raised its price target on the stock from $380 to $435 per share.

With Broadcom set to report earnings on Dec. 1, analyst James Schneider expects investors to focus on FY26 AI revenue guidance, contributions from Google and OpenAI, and gross margins as custom XPU shipments scale.

“We believe expectations are elevated and given the strong peer results (Nvidia), and Google’s positive datapoints with the Gemini 3 release, investors are positively positioned for the quarter.”

Expectations for the quarter are quite high, with updated guidance of 100% year-over-year AI revenue growth likely to exceed previous forecasts.

“We expect continued AI strength in 4Q, with 1Q guidance above the Street given strong spending at key customers – and we expect to update FY26 AI revenue guidance above 100% YoY”

Schneider estimates AI revenue for fiscal year 2026 will be $45.4 billion, an estimated increase of 128% year-over-year. It could reach $77.3 billion in 2027, growing 70% year on year.

With Broadcom helping the Google parent design its own in-house specialized AI chips, investors will also focus on Google and OpenAI’s contributions next year, in addition to Broadcom’s margin progress in 2026.

“We believe expectations have been met in the quarter, and investors are positioned to be positive given strong peer results and positive datapoints related to key XPU customers, particularly following Google’s latest Gemini 3 launch. Given the gross margin decline from the custom

Broadcom is a technology company uniquely positioned to lead the AI ​​revolution due to its custom chip offerings and networking assets.

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Disclosure: None.