TD Cowen Reiterates Buy Rating and $500 Target for Broadcom

TD Cowen has reaffirmed its buy rating on semiconductor giant Broadcom while keeping its stock price target at $500. Analyst Joshua Buchalter issued the update, noting that the target points to a potential upside of about 31 percent from the previous closing price of $380. The firm remains positive as investors focus heavily on infrastructure spending for artificial intelligence and Broadcom expanding its role in chip deployments.

The bullish outlook stems from multi year visibility in artificial intelligence semiconductor revenue. Management projects more than $100 billion in AI semiconductor revenue by fiscal 2027. Confidence is also supported by Google and its capital expenditure plans, alongside strong gross margin performance. Even with a short term stock drop of about 10 percent over the past week, Broadcom remains up roughly 9 percent for the year.

While the general sentiment on Wall Street remains a strong buy, the analyst noted a few potential risks to watch. These include softer timelines for Meta and uncertainty around other custom silicon programs, plus increasing competition from companies like MediaTek. Traders and investors will watch the upcoming earnings results to see if multi year artificial intelligence visibility stays on track.