UBS Reiterates Buy on Broadcom With $470 Target, Citing AI Revenue Outlook

UBS Reaffirms Buy Rating and $470 Price Target

UBS reiterated a Buy rating on Broadcom (NASDAQ: AVGO) with a $470 price target following a virtual non-deal roadshow with Broadcom's chief executive and chief financial officer. Analyst Timothy Arcuri said the firm came away believing Broadcom established "a strong upward bias" to its fiscal 2027 and 2028 AI revenue guidance issued on its recent earnings call. The Investing.com report dated October 2, 2026, noted that the target was based on roughly 17 times enterprise value to free cash flow applied to a calendar year 2027 software free cash flow contribution of $31.2 billion, and approximately 30 times enterprise value to free cash flow applied to a calendar year 2027 semiconductors free cash flow contribution of $60.4 billion. TipRanks' October 2, 2026 coverage of the same UBS note said the analyst maintained estimates and the $470 target.

AI XPU Program and TPU Customer Financing

UBS said investor concerns about Broadcom's flagship TPU program are "misguided." According to the October 2, 2026 Investing.com summary, Broadcom told the roadshow that engagement remains "very strong" for the next two generations of its flagship XPU program following the v8i ramp in 2027, and that the company is now including significantly more SRAM and ARM CPU cores for orchestration and management. Broadcom also addressed its initial frontier lab customer that is buying TPUs, saying it "sells chips, not financial products" and is not providing direct financing; instead it is contributing to a platform for the customer to use third-party lenders, with residual-value guarantees limited to select tranches that management described as a small fraction of the overall financing.

Revenue Trajectory and Current Valuation Snapshot

The October 2, 2026 Investing.com report cited revenue growth of 49% over the trailing twelve months as of the third quarter of fiscal 2026, with analysts forecasting 66% revenue growth for fiscal 2026. The same report placed Broadcom's current share price at $343.64 and described the $470 target as implying potential upside of about 55%, while stating that Broadcom generated $39.4 billion in levered free cash flow and carried a "GREAT" financial health score on InvestingPro's metrics. TipRanks' same-day coverage aligned the $470 target with the firm's positive view.

Other Recent Analyst Actions

Separately, Investing.com's October 2, 2026 article summarized several other analyst moves around Broadcom. DA Davidson lowered its price target to $350 from $400, citing concerns over near-term revenue guidance, while BMO Capital raised its target to $575 on AI revenue growth and Piper Sandler initiated coverage with an Overweight rating and a $460 price target, pointing to Broadcom's position in ASIC chips for AI inference. Cantor Fitzgerald also reiterated an Overweight rating, referencing Broadcom's plans to supply significant chip quantities to Anthropic in the coming years.

Stock Performance Since Last Earnings

A Zacks.com note dated October 2, 2026 reported Broadcom shares were down about 3.8% since the company's last earnings release roughly 30 days earlier, framing the move as a prompt to revisit forward earnings estimates. The article did not attribute the decline to a specific catalyst.