Analyst sets Street-high AVGO stock price target

Core Viewpoint - Broadcom has received an upgrade from HSBC, indicating strong confidence from Wall Street, with a new price target of $400, suggesting a 52% upside potential [1][4]. Company Summary - Broadcom's stock price increased over 3% following the upgrade, reaching $263, and has seen a year-to-date gain of more than 13% [1][3]. - The upgrade is driven by surging demand for application-specific integrated circuits (ASICs), particularly due to the growth in artificial intelligence workloads [3][4]. Industry Summary - HSBC has significantly revised revenue estimates for Broadcom's ASIC business, projecting revenues of $28.4 billion in FY26 and $42.8 billion in FY27, representing increases of 58% and 96% from previous forecasts [4][6]. - The share of capital expenditure allocated to ASICs is expected to rise from 2% in FY23 to 14% by FY27, indicating a shift towards AI-accelerated infrastructure [5][6]. - Broadcom's strong pricing power is highlighted, with an expected average selling price (ASP) growth of 92% year-over-year in FY26, followed by an additional 25% increase in FY27 [5][6].