Key Moments
- Mizuho raised its price target on Broadcom Inc (NASDAQ:AVGO) to $450 from $410 while maintaining an “Outperform” rating.
- Broadcom guided January-quarter revenue to about $19.1 billion, with expected AI sales of approximately $8.2 billion, up about 26% quarter-on-quarter.
- The company’s total backlog increased to $162 billion, including $73 billion tied to AI, supported by growing orders from Anthropic and a fifth large customer.
Revised Target and Rating
Mizuho increased its price target on Broadcom Inc (NASDAQ:AVGO), pointing to accelerating strength in the chip designer’s artificial intelligence segment and a sharply higher order backlog.
The firm reiterated its “Outperform” recommendation and moved its target to $450 from $410, describing Broadcom as its preferred idea as growth in AI ASICs and an increasingly robust customer pipeline suggest additional upside potential.
$AVGO | 𝐁𝐫𝐨𝐚𝐝𝐜𝐨𝐦 𝐐𝟒 𝐄𝐚𝐫𝐧𝐢𝐧𝐠𝐬 𝐑𝐞𝐩𝐨𝐫𝐭: Revenue: $18.02B (↑ 28% YoY) | GAAP EPS: $1.74 | Adjusted EPS: $1.95
👉 𝐁𝐮𝐬𝐢𝐧𝐞𝐬𝐬 𝐇𝐢𝐠𝐡𝐥𝐢𝐠𝐡𝐭𝐬:
➤ 𝐀𝐈 𝐬𝐞𝐦𝐢𝐜𝐨𝐧𝐝𝐮𝐜𝐭𝐨𝐫 𝐫𝐞𝐯𝐞𝐧𝐮𝐞 grew 𝟕𝟒% YoY in Q4, driving record revenue growth.… https://t.co/Lj8T9qzIVO pic.twitter.com/IGFqqb59UI
— Hardik Shah (@AIStockSavvy) December 11, 2025
Quarterly Performance and Guidance
Mizuho’s analysts noted that Broadcom reported solid results for the October quarter and provided guidance for the January quarter that called for revenue of about $19.1 billion, which represents roughly 6% sequential growth. Within that outlook, AI-related revenue is expected to reach about $8.2 billion, an increase of around 26% quarter-on-quarter.
| Metric | October Quarter | January-Quarter Guidance |
|---|---|---|
| AI revenue | ~$6.5 billion (up 25% q-o-q) | ~$8.2 billion (up ~26% q-o-q) |
| Non-AI semiconductor revenue | ~$4.7 billion (up 19% q-o-q) | n/a |
| Total revenue | n/a | ~$19.1 billion (up ~6% q-o-q) |
AI and Semiconductor Revenue Breakdown
According to Mizuho, AI revenue in the October quarter was around $6.5 billion, representing a 25% quarter-on-quarter increase. Non-AI semiconductor revenue also delivered strong growth, rising 19% sequentially to roughly $4.7 billion.
Backlog Expansion and Key Customers
Broadcom’s overall backlog climbed to $162 billion from $110 billion. Of this total, $73 billion is associated with AI. The analysts highlighted that this growth was driven in part by Anthropic, whose orders doubled to about $21 billion, as well as by the ramp-up of a fifth large customer.
| Backlog Component | Value |
|---|---|
| Total backlog | $162 billion |
| Prior total backlog | $110 billion |
| AI-related backlog | $73 billion |
| Anthropic orders | ~$21 billion |
Longer-Term AI Projections
Mizuho’s analysts project that Broadcom’s AI revenue in fiscal 2026 will increase 126% year-on-year to about $45 billion, a level they view as above prevailing Street expectations. They also see further potential in fiscal 2027, noting upside if OpenAI emerges as Broadcom’s sixth major customer.
Competitive Position in AI Compute and Networking
The analysts commented that Broadcom continues to be the fastest-growing provider in AI compute and networking. They attributed this position to robust demand for scale-up networking solutions and ongoing adoption of copper-based architectures by hyperscale customers.
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