Broadcom shares jump on strong AI chip revenue outlook

Broadcom AVGO.O shares up 6% in premarket trading on Thurs after company projected AI chip revenue would exceed $100 bln by 2027 and announced a new $10 bln buyback program

Also issued a strong Q2 rev forecast of ~$22.0 bln, above analysts' average estimate of $20.56 bln per LSEG, signaling robust demand for its custom AI chips and networking equipment

Analysts at Goldman Sachs said Broadcom's much stronger-than-expected 2Q26 rev outlook and sharply improved visibility into its AI semiconductor pipeline should support further upside in the stock

Stock recently traded at 26 times expected earnings vs its five-year avg of 22, per LSEG data

The average rating of 51 analysts covering the stock is "buy", with 49 "buy" or "strong buy" recommendations and two "hold" ratings

AVGO has dipped ~8.3% year-to-date, compared with a 1.9% fall in the Nasdaq .IXIC, and remains ~23% below its all-time intraday high of $414.61 reached on Dec 10, 2025