Broadcom stock gains as AI revenues surge and analysts lift targets

Published on 09/12/2026 at 14:35 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Broadcom stock trades around USD 360 as of September 10, 2026, supported by a sharp jump in AI chip revenue and robust quarterly growth. Analysts see about 40 percent upside with an average price target near USD 506 and several houses raising estimates.

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Broadcom Inc. stock (ISIN US11135F1012) is trading near USD 360 after its latest quarterly report showed AI chip revenue growth of 221 percent and a strong double-digit increase in overall sales as of the most recent quarter ended in 2026, while analysts now see roughly 40 percent upside over the coming year based on updated price targets around USD 505.97.

AI revenue surge drives quarterly growth

According to an analysis on September 12, 2026 from The Motley Fool, Broadcom reported that revenue from its AI chips grew 221 percent year over year in the latest reported quarter, underscoring how demand from major cloud and AI customers is reshaping the company’s earnings profile.

A separate report on September 12, 2026 notes that Broadcom’s total revenue in the most recent quarter reached USD 18.89 billion, up 112 percent compared with the same quarter a year earlier, cementing the company’s position among the largest global chipmakers by sales.ChoiceStockUS

The combination of a 221 percent increase in AI-specific revenue and a 112 percent rise in overall quarterly revenue shows that AI demand is not only adding a new growth vector but also driving a broad expansion across Broadcom’s portfolio, which includes networking, custom accelerators and software assets such as VMware.

Broadcom stock valuation and analyst upside

Broadcom stock closed at USD 360.83 on Nasdaq on September 10, 2026, placing the shares about 27 percent below their 52-week high of USD 495.00 and highlighting a sizable gap between recent trading levels and prior peaks.Ad-hoc-news

On the same data set summarized on September 11, 2026, MarketBeat reports that the average analyst price target for Broadcom stands at USD 505.97, implying around 40.2 percent potential upside from the price region around USD 360.83 and suggesting that equity research houses see further room for the stock to rerate higher over the next 12 months.MarketBeat

According to MarketBeat data cited in several updates on September 12, 2026, Broadcom currently carries a consensus rating of Moderate Buy based on one Strong Buy recommendation, twenty-nine Buy ratings and four Hold ratings, underlining that most covering analysts expect further earnings growth and share-price appreciation even after the recent rally.MarketBeat

Several major houses have adjusted their price objectives in response to Broadcom’s latest numbers and AI trajectory. In a report summarized on September 11, 2026, JPMorgan Chase & Co raised its price target from USD 500.00 to USD 580.00 with an Overweight rating, Evercore set a target of USD 578.00, and Rosenblatt Securities initiated coverage with a Buy rating and a USD 600.00 target, reflecting increasing confidence in Broadcom’s medium-term earnings power.Ad-hoc-news

Latest earnings figures and margins

MarketBeat’s earnings summary dated September 12, 2026 indicates that Broadcom last reported quarterly earnings per share of USD 3.32, ahead of the consensus estimate of USD 3.22, meaning the company beat expectations by USD 0.10 per share in the most recent quarter.MarketBeat

In the same report, Broadcom’s net margin is listed at 42.94 percent and return on equity at 48.33 percent for the latest quarter, figures that point to a highly profitable business model and efficient use of shareholder capital compared with many semiconductor peers.MarketBeat

Broadcom generated quarterly revenue of USD 29.59 billion in that latest period, beating analyst expectations of USD 29.24 billion and rising 85.5 percent year over year from the prior-year quarter, which underlines how both organic growth and acquisitions, including the integration of VMware, are feeding into a much larger revenue base.MarketBeat

For the current fiscal year, research analysts compiled by MarketBeat expect Broadcom to post earnings per share of 10.36, showing how the company’s profitability is projected to grow alongside its expanding revenue streams, although that forward EPS figure should be viewed in the context of continued heavy investment into AI infrastructure and software.

Dividend payments and shareholder returns

Broadcom also returns cash to shareholders through a regular dividend. The latest quarterly dividend announced in the earnings summary will be paid on September 30, 2026 to shareholders of record as of September 21, 2026, at USD 0.65 per share, corresponding to an annualized dividend of USD 2.60 and a dividend yield of about 0.7 percent at recent prices.MarketBeat

This combination of a modest dividend yield and strong price appreciation potential, based on consensus targets around USD 505.97 compared with a closing level of USD 360.83, positions Broadcom as a stock where total return could primarily come from earnings-driven revaluation, with the dividend offering a small additional income component.

Regulatory risk around VMware licenses

While the earnings and AI growth story is robust, there are emerging regulatory risks that investors in Broadcom stock need to consider. A September 12, 2026 analysis from CMoney notes that European Union officials are investigating changes Broadcom made to VMware’s enterprise software licensing model, with concerns that some new contract terms may be harming customers.CMoney

The same piece reports that Broadcom shares were up about 1.05 percent in early trading on that date, with the price quoted at USD 361.99, as the market seemed to view the investigation as a risk that has not yet escalated into formal charges, but one that could affect sentiment if regulatory findings lead to fines or mandated changes to VMware’s licensing structure.

For investors, this creates a tension between the attractive fundamentals, highlighted by AI revenue growth of 221 percent and overall quarterly revenue up 112 percent, and the possibility that regulators could challenge parts of Broadcom’s post-acquisition strategy around VMware, potentially impacting software margins or growth if licensing terms must be revised.

Next checkpoints for Broadcom stock

Looking ahead, one important near-term date for Broadcom shareholders is the September 21, 2026 record date for the upcoming USD 0.65 quarterly dividend payment, followed by the distribution on September 30, 2026, which will provide a modest cash return and may serve as a reminder of the company’s commitment to shareholder payouts.MarketBeat

Analyst commentary and target revisions remain another key checkpoint. With JPMorgan raising its target to USD 580.00, Evercore highlighting a USD 578.00 level and Rosenblatt Securities talking about USD 600.00, investors will watch closely whether further upgrades follow as more data on AI chip demand and VMware integration become available.Ad-hoc-news

Broadcom stock level and market context

As of the last completed trading day on September 10, 2026, Broadcom stock closed at USD 360.83 on Nasdaq, roughly 27 percent below its 52-week high of USD 495.00, indicating that despite strong AI-driven growth and consensus price targets around USD 505.97, the shares still trade at a discount to both their recent peak and the average analyst expectation.