Broadcom Stock Price Forecast – NASDAQ:AVGO Holds $351 As $73B AI Backlog Fuels $19.1B Q1 Outlook

Broadcom (NASDAQ:AVGO) – AI Infrastructure Cash King At $351 With $73B Backlog

Current NASDAQ:AVGO Price, Range And Valuation Snapshot

NASDAQ:AVGO trades around $351.71 per share after adding $8.69 on the day (+2.53%), with after-hours ticking to roughly $352.00. The day range sits between $344.05 and $354.51, while the 52-week range spans $138.10–$414.61. At these levels the stock carries a market cap near $1.67 trillion, a trailing P/E ratio of 73.81 and a dividend yield of 0.74%. Anyone looking at the price behavior can see that pullbacks into the mid-$340s continue to get bought aggressively on the real-time chart for NASDAQ:AVGO:
https://www.tradingnews.com/Stocks/AVGO/real_time_chart

Revenue Engine Of NASDAQ:AVGO – $18B+ Quarter With AI Driving 28% Top-Line Growth

Broadcom closed its latest reported quarter with record revenue of roughly $18.0–$18.015 billion, up 28% year-on-year, accelerating from about 22% growth the prior quarter. The mix is split between Semiconductor Solutions and Infrastructure Software, but the growth pulse is clearly coming from AI. Semiconductor revenue reached about $11.1 billion, up 35% YoY, while infrastructure software delivered $6.9 billion, up 19% YoY. AI semiconductor sales grew 74%, while the non-AI semiconductor book was basically flat, which means almost all incremental growth is AI-related. This shift is also reshaping the margin structure: total gross margin climbed from 64% to around 68%, with operating income up 62% to roughly $7.5 billion, taking the operating margin from 32.9% to about 41.7%. Adjusted EBITDA reached around $12.2 billion, up 34%, and free cash flow for the quarter printed near $7.5 billion, up 36%, confirming that this is not just high-revenue growth; it is high-quality growth converting into cash.

Guidance For NASDAQ:AVGO – Q1 Revenue To $19.1B And AI Semiconductor To $8.2B

Looking ahead, NASDAQ:AVGO is not signaling any plateau. For Q1 FY2026, management guides revenue of about $19.1 billion, again +28% YoY, which adds roughly $1.1 billion sequentially on top of the record Q4. Semiconductor sales are expected to climb roughly 50%, with AI semiconductor revenue doubling year-on-year to $8.2 billion and making up around two-thirds of the semiconductor segment. Software is guided at around $6.8 billion. Adjusted EBITDA margin is guided at 67%, down about 100 basis points from the prior quarter’s 68%. That modest margin compression is entirely consistent with a mix shift toward more AI hardware and slightly less software in the blend, not with any demand problem. From a stock perspective, this guidance means the current $351–$352 share price is sitting on top of an earnings and cash flow curve that is still bending higher into 2026, with AI becoming an even larger share of the pie.

AI Core Of NASDAQ:AVGO – 74% AI Growth Now, 2x AI Semi Next Quarter

The AI side of NASDAQ:AVGO has moved from “nice story” to hard numbers. In the last reported quarter, semiconductor revenue of $11.1 billion carried 74% AI growth, and that AI line is now the main expansion vector. Non-AI chips are roughly flat, so investors effectively own an AI-levered semiconductor book sitting on top of a steady legacy portfolio. For the coming quarter, the company expects AI semiconductor revenue to reach $8.2 billion, double last year’s level. That means AI alone is on track to be nearly half of total group revenue and roughly two-thirds of the semiconductor segment. At the current share price near $352, the market is paying for a business whose AI revenue is compounding at 50–100% rates off an already large base, not off a small experimental line. The critical detail is that this AI exposure sits in networking, optics and custom accelerators – the plumbing that keeps GPUs loaded – instead of in a commoditized end-product slot.

Software And VMware – 93% Gross Margins Stabilizing NASDAQ:AVGO Earnings

Underneath the AI hardware cycle, NASDAQ:AVGO has built a software layer designed to stabilize earnings and cash. Infrastructure software, boosted significantly by VMware, is now generating close to $27 billion annually, with recent quarterly revenue of $6.9 billion, up 19% YoY. This segment runs at around 93% gross margin and roughly 78% operating margin. Semiconductors account for about 61% of total sales but only roughly 47% of gross profit because software is so margin rich. This structure matters when the AI mix increases: even as hardware margins come in below software, total gross margin still climbed to about 68%, and total operating margin jumped above 41%. That combination allows Broadcom to press its AI expansion hard while keeping a very high overall profitability profile. For anyone checking the full segment picture, the stock profile view is the central checkpoint:
https://www.tradingnews.com/Stocks/AVGO/stock_profile

$73B AI Backlog – Visibility For NASDAQ:AVGO Across 18 Months Of Hyperscaler Spend

One of the strongest data points behind NASDAQ:AVGO is the disclosed AI order backlog of about $73 billion scheduled to ship over the next 18 months. This is not a vague lifetime TAM estimate; it is concrete visibility into large deployments with hyperscalers. The backlog spans Ethernet switches, optics and custom accelerators, effectively tying Broadcom into the parts of the AI stack that hyperscalers cannot underinvest in without stranding their own GPU capex. Industry projections point to more than $600 billion of total capex by the big cloud players in 2026, with around $450 billion tagged to AI infrastructure. The important nuance is that this spend is not evenly distributed; it concentrates where it removes bottlenecks. Broadcom has placed NASDAQ:AVGO right in those chokepoints – high-bandwidth switching, high-speed optics and application-specific accelerators that keep clusters fully utilized. That is why the stock can support a $1.67T valuation and a high-teens to twenties forward multiple without relying on speculative use cases.

Networking, Optics And Custom Silicon – Core Moat Of NASDAQ:AVGO In AI

The strategic moat around NASDAQ:AVGO is built on three concrete layers. First, high-end networking: devices like the Tomahawk 6, a 102.4 Tbps Ethernet switch paired with co-packaged optics, are designed specifically for AI cluster networking. External research indicates that 800G and beyond transceivers could be 40–60% below demand through 2027, putting enormous weight on vendors that can deliver advanced optics at scale. Second, custom silicon: Broadcom co-designs accelerators with hyperscalers, which means once a platform standardizes on a custom chip, the switching fabric and optics around it are deeply integrated. Replacement is slow and expensive. Third, design reuse: large parts of the IP developed for one custom program can be reused across multiple designs, so incremental AI revenue does not require proportional additions in R&D. Combined, these layers let Broadcom sell into the most difficult-to-replace parts of the AI stack and keep NASDAQ:AVGO embedded in the build-out even if hyperscalers fine-tune their capex plans.

Cash Generation Of NASDAQ:AVGO – $27.5B OCF And Just $0.62B Capex In FY2025

On cash, NASDAQ:AVGO behaves more like a software platform than like a capital-heavy chip manufacturer. In the last reported quarter, operating cash flow reached around $7.703 billion, with capex of only about $237 million, yielding free cash flow of roughly $7.466 billion in just one quarter. For FY2025, the company generated around $27.5 billion in operating cash flow and spent only about $0.62 billion in capex, roughly 1% of revenue. Levered free cash flow margin sits close to 39%, and OCF-to-FCF conversion is about 91%. That means the majority of every incremental AI or software dollar drops through to free cash flow. This cash profile gives Broadcom room to keep AI R&D elevated, integrate VMware, pay down acquisition debt and still raise dividends, all without stressing the balance sheet. Management’s own projections of 35% annual EBITDA growth and 44% annual free cash flow growth into the next few years are aggressive, but they line up with the current conversion rates and with the guided AI ramp.

Capital Returns And Dividend Path For NASDAQ:AVGO Shareholders

For NASDAQ:AVGO investors focused on capital returns, the mix has been adjusted but not weakened. In the latest full year, dividends paid increased from about $9.814 billion to roughly $11.142 billion, while stock repurchases dropped from around $7.176 billion to about $2.45 billion. The company clearly prioritized preserving strategic flexibility and funding VMware integration over aggressive buybacks, while still rewarding shareholders in cash. The quarterly dividend was raised by 10% to $0.65, marking 15 consecutive years of dividend increases. At today’s $351–$352 share price, the 0.74% yield looks small, but the absolute dollar payout is large, and the cash coverage from $27.5B operating cash flow is more than comfortable. Any step-up in future insider participation or management alignment with these capital decisions will show up here:
INSIDER TRANSACTION

Valuation Of NASDAQ:AVGO – High On Trailing Metrics, Reasonable On Forward Cash And EPS

On simple trailing metrics, NASDAQ:AVGO is expensive. A $351.71 share price with a P/E of 73.81 and a $1.67T market cap looks stretched to anyone looking only at last year’s earnings. The forward picture is different. The non-GAAP P/E sits around 51.6x, the forward P/E is about 34x, and the FY2 P/E near 24.9x, while forward revenue is expected to grow roughly 37% and EPS is projected to rise close to 30–40% annually into FY2027, with consensus around $10.14 for FY2026 and $14.04 for FY2027. Over the last 90 days, the stock has seen roughly 42 upward EPS revisions and zero downward revisions, which is what you want to see when paying any kind of premium. On an EV/EBITDA basis, a blended multiple of around 37.3x – weighting software and semiconductor economics – supports a bullish fair value near $498 per share, implying roughly 40–45% upside from the mid-$350s, while a more conservative base case around $428.60 still points to a solid double-digit return. With gross margins around 77%, EBITDA margin near 55%, and free cash flow margins around 39%, the stock looks like a classic high-quality compounder rather than a momentum name with thin fundamentals.

Risk Map For NASDAQ:AVGO – Mix Pressure, Hyperscaler Dependence And Internal Designs

The main risks for NASDAQ:AVGO are clear and quantifiable. First, margin mix risk: as AI hardware becomes a larger share of revenue, consolidated gross margin will trend lower than when software dominated, even though absolute EBITDA and free cash flow rise. That creates headline volatility around quarters when margins dip by 50–100 basis points. Second, hyperscaler concentration: a large slice of the $73B AI backlog sits with a handful of very large cloud customers. A synchronized pause or reset in their AI capex plans would flatten the growth curve, even if the technology positioning is intact. Third, internal chip efforts and multi-sourcing: large platforms are pushing their own accelerators and networking solutions. If they successfully in-source too much of Broadcom’s current role in switching, optics or custom silicon, revenue per cluster could compress and share of wallet could fall. Fourth, competitive and macro shocks: competing AI networking and ASIC solutions, or any broad risk-off move in equities, could compress the multiple on NASDAQ:AVGO regardless of company-specific execution. These risks do not negate the AI build-out, but they can create sizeable drawdowns along the way, especially when sentiment is hypersensitive to every margin and capex headline.

Final Opinion On NASDAQ:AVGO – AI Bottleneck Leader Rated Buy At ~$351

When you line up the numbers – $18.0–$18.015B quarterly revenue growing 28%, semiconductor sales of $11.1B with 74% AI growth, software at $6.9B with 93% gross margins, Q4 EBITDA of $12.2B, free cash flow of $7.5B, Q1 revenue guidance of $19.1B, AI semiconductor guidance of $8.2B, a $73B AI backlog over 18 months, FY2025 operating cash flow of $27.5B with only $0.62B capex, a $1.67T valuation, a forward earnings curve still being revised upward and realistic fair-value bands clustering between roughly $430 and $500 per share – the data supports a clear stance. At around $351–$352, NASDAQ:AVGO remains a Buy, not a Hold, with the thesis built on its role in AI infrastructure bottlenecks and its ability to convert that position into high-margin, high-conversion cash flows rather than on hype or speculative optionality.

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