Price Prediction: Will Broadcom Stock Hit $500 This Year?

Key Points:

• Broadcom's stock dropped 13.78% in one week after strong Q2 results showing 47.87% revenue growth and an eighth consecutive EPS beat, currently trading at $396.60 with a 24/7 Wall St. price target of $503.61, implying nearly 27% upside over 12 months and a "buy" recommendation with 90% confidence.
• Despite a 12.59% plunge post-earnings due to perceived light Q3 AI guidance, Broadcom posted strong Q2 results including $22.19 billion revenue, $2.44 non-GAAP EPS, 143% YoY AI semiconductor revenue growth to $10.8 billion, and CEO Hock Tan forecasting over 200% YoY AI revenue growth to $16 billion in Q3.
• Bullish analysts cite a $600 billion-plus revenue opportunity from Google's TPU expansion and Broadcom’s target of $100 billion AI sales by 2027, with price targets up to $600 and Wall Street ratings heavily favoring buys; the bull case projects a price near $541 by year-end.
• Bear risks include heavy insider selling (though partly pre-scheduled), a high trailing P/E of 64 that limits margin for error, and cautious sentiment with some downgrades; the bear-case price target stands at $417.18, but Q3 guidance still implies strong 84% total revenue growth.
• Long-term projections from 24/7 Wall St. anticipate Broadcom shares rising steadily to nearly $795 by 2030, assuming continued AI semiconductor growth and free cash flow conversion, with risks tied to hyperscaler capital expenditure shifts and custom silicon market dynamics.