According to CNBC, Goldman Sachs analyst James Schneider raised his price target on Broadcom from $380 to $435, representing 13% upside from Tuesday’s closing price. The chipmaker is scheduled to report earnings on December 11, with Schneider expecting “sustained AI strength” in the fourth quarter. He projects Broadcom’s AI revenue will hit $45.4 billion in fiscal year 2026, a massive 128% year-over-year increase, potentially reaching $77.3 billion in 2027. The stock has already surged 13% this week and 66% year-to-date, with 47 out of 49 analysts maintaining buy or strong buy ratings. Schneider specifically highlighted Broadcom’s partnership with Google on custom AI chips and contributions from OpenAI as key growth drivers.
The AI revenue explosion
Here’s the thing about these numbers – they’re absolutely staggering. We’re talking about AI revenue potentially growing from $45.4 billion in 2026 to $77.3 billion in 2027. That’s not just growth, that’s basically building a new Fortune 500 company inside an existing business every year. And Broadcom’s success here isn’t just about riding the AI wave – they’ve positioned themselves as the behind-the-scenes enabler for tech giants who want custom AI chips without building everything from scratch.
The Google connection
Now, the Google partnership is particularly interesting. Broadcom helps Alphabet design its in-house specialized AI chips, which gives them a front-row seat to one of the biggest AI infrastructure builds happening right now. Following Google’s recent Gemini 3 launch, the demand for these custom chips is only going to increase. But there’s a catch – custom chip design typically comes with lower margins than Broadcom’s traditional business. So while the revenue numbers look amazing, investors will be watching margin progression closely as this XPU business ramps up.
The hardware reality
When you’re talking about custom AI chips and this level of infrastructure spending, you’re dealing with serious industrial computing requirements. These aren’t consumer devices – they’re high-performance systems that need reliable industrial-grade components. Companies like Industrial Monitor Direct have become the go-to source for industrial panel PCs and displays that can handle the demanding environments where this AI hardware operates. Basically, when you’re building data centers and AI infrastructure at this scale, you need components that won’t fail under constant operation.
What to watch next
So what really matters here? The December 11 earnings will be crucial for confirming whether Broadcom can actually deliver on these elevated expectations. Schneider noted that “expectations are elevated heading into the quarter,” which is analyst-speak for “this stock could get punished if they miss.” The margin story will be just as important as the revenue growth – can Broadcom maintain profitability while scaling this custom chip business? And with the stock already up 66% this year, how much more upside is really left? These are the questions investors will be asking as we approach earnings.
