Beyond Nvidia: how Broadcom could reach $600 by 2027

Despite this significant advantage, Broadcom’s stock has yet to fully reflect this story. Currently trading at $331.68, the stock is down year-to-date and below its 52-week high of $493.28, though it has still delivered impressive returns of 560.45% over five years. Analysts anticipate a potential resurgence for Broadcom in 2027, with a possible path to a $600 share price.

Wall Street’s consensus analyst target price stands at $530.14, representing a potential 60% upside. The firm boasts a strong analyst rating, with 8 “Strong Buy” and 41 “Buy” ratings, alongside 2 “Hold” ratings and no “Sell” ratings.

Projected growth is a key driver of this optimism. Fiscal 2027 earnings per share (EPS) are estimated at $19.4651, a substantial 67% increase from the $11.6657 expected for fiscal 2026. Revenue is also forecasted to climb approximately 64% to $174.2 billion.

Several factors could contribute to Broadcom achieving the $600 target. These include a doubling of AI revenue to approximately $115 billion in 2027, fueled by deployments from major clients like Anthropic (5 gigawatts of TPU version 8i) and OpenAI (1.3 gigawatts of Jalapeno). The company’s content per gigawatt is estimated at $20 to $30 billion. Advancements in networking technology, such as the Tomahawk 7 Ethernet switch, and a significant financing structure involving Blackstone (NYSE:BX) are also expected to play a role.

However, successful deployment timing remains a critical challenge, as Tan noted, “Even as we ship the chips, will they be deployed on a timely basis?” Customer concentration and broader market conditions could also hinder progress.

Broadcom has previously achieved significant gains, including 93% in 2014, 104% in 2023 and 110% in 2024. While replicating such performance annually is difficult given the company’s current size, the stock has demonstrated a tendency to re-rate quickly when AI growth accelerates. Reaching $600 would require an 81% gain, a target that, while ambitious, is supported by strong fundamentals and management’s strategic vision.