Broadcom Stock AVGO Price at $360 Trades on 54x P/E With $12.50 EPS Path to $700 by 2027

NASDAQ:AVGO Holds $360 as AI Momentum and VMware Integration Redefine Valuation

Broadcom (NASDAQ:AVGO) is trading around $360.50, valuing the company at $1.72 trillion. This represents a 55% rally year-to-date, far outpacing the S&P 500’s 12% gain and even topping NVIDIA’s 32% advance. The run has been fueled by explosive demand for AI infrastructure, record growth in its semiconductor segment, and strong contributions from VMware, its largest-ever acquisition. With the stock at all-time highs and momentum indicators flashing overbought, investors are asking whether AVGO can push toward $450 near-term resistance or if consolidation is imminent before the longer-term bull case toward $700 by FY2027 plays out.

Semiconductor Segment Surges 26% on Custom AI Chips

Broadcom’s Q3 2025 results confirmed its role as a critical supplier to the AI economy. Semiconductor revenues climbed 26% year-over-year, driven by networking chips and custom ASIC designs for hyperscalers such as Alphabet, Amazon, and Meta. These partnerships allow cloud providers to bypass NVIDIA’s expensive GPUs with lower-cost, power-efficient alternatives. The ASIC market, worth $17.6 billion in 2023, is projected to reach $31 billion by 2032, and Broadcom is already one of the leading players. At the same time, the global AI inference server market is expected to grow from $24.6 billion in 2024 to $133.2 billion by 2034, a CAGR of 18.4%. This shift toward inference workloads positions Broadcom to take share as NVIDIA’s dominance in training faces pressure.

VMware Drives $6.7 Billion Quarterly Sales with 79% Margins

The $69 billion VMware acquisition, completed in November 2023, has rapidly reshaped Broadcom’s revenue mix. In Q1 2025, VMware contributed $6.7 billion in software sales, up 47% year-on-year, with non-GAAP gross margins rising to 79.1%. Even as growth slowed to 17% in Q3 2025, the segment remains a consistent, high-margin income stream. This diversification insulates Broadcom from semiconductor cyclicality and directly challenges NVIDIA’s advantage in software ecosystems. By combining hardware dominance with recurring VMware revenue, Broadcom has created a hybrid model that commands a valuation premium.

Balance Sheet Strength: Debt Reduced to $62.8 Billion

Broadcom has aggressively deleveraged following its VMware purchase. Long-term debt declined from $66 billion to $62.8 billion by Q3 2025, while cash balances rose 15% to $10.7 billion. Net income over the trailing twelve months was $18.9 billion, putting leverage comfortably below 4x earnings — a key institutional threshold. CEO Hock Tan has pledged to continue reducing debt, while also keeping capital free for further M&A activity. His leadership, extended through 2030, reassures investors who credit his disciplined acquisitions as the backbone of Broadcom’s compounding growth story.

Valuation: Premium Multiples with Justified Growth Expectations

Broadcom’s forward P/E stands at 54x, compared to NVIDIA’s 39.6x, while its forward EV/EBITDA multiple of 41.9x is nearly double the semiconductor sector median. On EV/Sales, AVGO trades at 27.7x, far above NVIDIA’s 20.7x and dwarfing the sector average of 3.37x. Over the last month, Broadcom’s multiples expanded 15–16%, while NVIDIA’s compressed slightly, highlighting market preference for AVGO’s diversified model. Analysts project EPS growth of 38% in FY2025, 36% in FY2026, and 28% in FY2027. If Broadcom delivers $12.50 EPS by FY2027, even at a reduced multiple of 56x, the implied price is $700, almost double today’s $360.

Technical Setup: Momentum Strong but Overextended

Technically, Broadcom is stretched. Shares hover at record highs near $360, well above all major moving averages. The RSI at 70.6 signals overbought territory, increasing the risk of short-term consolidation. However, moving averages remain stacked bullishly, with the 50-day EMA providing strong support. A near-term breakout above $365–$370 would open the path to $400 and $450, while any pullback toward the $340–$345 support zone may attract institutional buying. Compared to NVIDIA at $305 with RSI at 55, Broadcom’s chart looks hotter, but institutional demand suggests dips will be shallow.

Insider and Institutional Trends in NASDAQ:AVGO

Insider transactions have been modest, with most sales tied to compensation packages rather than directional bets. Institutions remain heavy holders, with pension funds and sovereign wealth funds steadily increasing exposure to AVGO since early 2025. Short interest sits at only 0.84%, underscoring the absence of significant bearish wagers. Options flows show bullish skew, with call open interest concentrated at the $400 and $450 strikes, reflecting confidence in upside targets.

Ecosystem Dominance: 99.9% of Internet Traffic Relies on Broadcom

Beyond AI and VMware, Broadcom’s moat rests on its unmatched role in networking and connectivity. Its chips power 99.9% of internet traffic, from PCIe switches to storage controllers. This ubiquity gives it pricing power and ensures it captures value across multiple layers of AI infrastructure. While custom chip margins are thinner than NVIDIA’s GPU profits, Broadcom’s broader ecosystem ensures stability and resilience that justify premium multiples.

Outlook for NASDAQ:AVGO

At $360 per share, Broadcom reflects both overextension on technicals and unmatched strength in fundamentals. With semiconductor growth at 26%, software sales topping $6.7 billion, balance sheet debt reduced to $62.8 billion, and institutional conviction rising, the stock has near-term upside toward $400–$450. Over the longer horizon, EPS growth and recurring software income point to a $700 price target by FY2027. Despite valuation risks, Broadcom’s blend of AI exposure, ecosystem dominance, and VMware integration leave NASDAQ:AVGO a Buy, even after its record-breaking run.

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