Did the analyst recommend buying Broadcom stock?

Yes, the analyst maintained a Buy rating on Broadcom.

Why was Broadcom's price target raised?

The raise is due to expected growth in AI ASIC chip revenue.

ASIC chips are application-specific integrated circuits designed for specific tasks, such as accelerating AI workloads in data centers.

HSBC Raises Broadcom (AVGO) Price Target to $600 on AI ASIC Growth

HSBC raised its price target on Broadcom (AVGO) to $600 from $450, keeping a Buy rating. The bullish outlook is based on anticipated growth in AI-specific ASIC chip revenue.

June 8, 2026

2 min read

Source: Insider Monkey

Key Numbers

new price target

$600.00

previous price target

$450.00

upside percentage

33%

HSBC analyst Frank Lee raised the price target on Broadcom Inc. (NASDAQ:AVGO) to $600.00 from $450.00 on June 2, 2026, while maintaining a Buy rating. The upgrade is driven by expectations of strong growth in revenue from AI-specific ASIC chips.

Rating Change

Previous Price Target: $450.00
New Price Target: $600.00
Rating: Buy (unchanged)
Potential Upside: Approximately 33% from the prior closing price.

Analyst Rationale

Lee believes Broadcom is well-positioned to capitalize on rising demand for custom AI ASIC chips used in data centers and machine learning acceleration. These chips are expected to drive significant revenue growth in the coming years, justifying the higher target.

Context

The recommendation comes amid heightened investor interest in AI-related semiconductor stocks. Broadcom, along with Qualcomm and Microsoft, is among the notable names in this space. Broadcom has not commented on the rating.

What to Make of It

The new target reflects analyst optimism about Broadcom's AI growth prospects, but investors should consider risks such as intense competition and market volatility.

Frequently Asked Questions

HSBC raised its price target for Broadcom (AVGO) to $600 from $450.

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This article was rewritten in Wrqti's editorial style based on information from the original source above. Content is informational only — not investment advice.