Prediction: This Will Be Broadcom's Stock Price by the End of 2027

Broadcom's stock price is expected to close at approximately $345 as of the current moment, having experienced a decline of nearly 30% over the past five months. The semiconductor business, which constitutes 70% of its revenue, specializes in producing various mobile, data center, networking, wireless, storage, and industrial chips.

However, the segment's growth in recent years has been primarily fueled by the sales of custom AI accelerators (XPUs) designed for hyperscalers. These XPUs enable more cost-effective processing of AI inference tasks compared to standalone GPUs. The company's infrastructure software business, accounting for the remaining 30% of its revenue, has also expanded rapidly through significant acquisitions, offering bundled infrastructure, security, and cloud-based services to lock in semiconductor customers.

Despite a deceleration in revenue growth during fiscal 2025 following the full-year completion of its $69 billion acquisition of VMware, Broadcom reported an acceleration in growth throughout fiscal 2026, largely driven by soaring sales of XPUs and AI networking chips. Analysts anticipate Broadcom's AI semiconductor revenue to surge by 186% year over year to $58 billion in fiscal 2026, approximately double to $115 billion in fiscal 2027, and double again to $230 billion in fiscal 2028.

This ambitious growth projection has resulted in a jaw-dropping compound annual growth rate (CAGR) of 78% for the company's total revenue and EPS from fiscal 2025 to fiscal 2028. Despite recent headwinds such as the Federal Reserve's September rate hike and rising Treasury yields, which have caused many investors to distance themselves from higher-growth AI stocks, Broadcom's stock could still reach new heights, potentially trading at mid-$490s by the end of the year.