Goldman Sachs believes that Broadcom's AI growth over the next two years, besides Google, will largely come from new customers such as Anthropic, OpenAI, and Meta. Therefore, it has significantly raised its revenue and profit forecasts for 2028, projecting approximately $125 billion and $240 billion for fiscal years 2027 and 2028 respectively (official guidance is over $115 billion and over $230 billion respectively). The cost is that the increasing proportion of custom AI chips will continue to depress gross margins, but economies of scale are expected to keep operating profit margins relatively stable. Therefore, Goldman Sachs maintains its "Buy" rating and raises its target price from $525 to $540.
Optimistic scenario: $756; pessimistic scenario: $234. (The above views are from Goldman Sachs' September 2nd report.)
