Eben@CANSLIM ResearchBroadcom Inc. (AVGO) reaffirmed its FY27 and FY28 AI revenue targets of $115bn and $230bn at the Goldman Sachs Communacopia + Technology 2026 conference, with management stressing that supply, not demand, is the binding constraint. Goldman Sachs rates AVGO Buy with a 12-month price target of $540, implying 50.9% upside from the $357.90 close on 4 September 2026. The bank’s analysts argue the company’s custom silicon, advanced packaging and AI networking franchise, plus a new $35bn XPV financing partnership, position it to capture a widening share of AI infrastructure spending.
Key Takeaways
- Goldman Sachs rates Broadcom (AVGO) Buy with a $540 12-month price target, based on 30x a normalised EPS estimate of $18.00, versus a $357.90 reference price.
- Broadcom management reiterated FY27/FY28 AI revenue targets of $115bn / $230bn, grounded in customer visibility and deployment readiness.
- Broadcom’s $35bn XPV partnership with Blackstone and Apollo is designed to fund more than 20GW of AI compute capacity while limiting Broadcom’s direct financial liability.
- Broadcom expects frontier model developers to capture roughly 75% of industry revenue (~$120bn) against only ~$30bn from open-weight models, despite similar investment levels.
- Goldman Sachs forecasts Broadcom EPS of $10.16 in FY26 and $18.67 in FY27, with revenue rising to $177.0bn in FY27 from $106.1bn in FY26.
Lead Analysis: What Goldman Sachs Told Clients After Broadcom’s Communacopia Appearance
In a report titled “Broadcom Inc. (AVGO): Communacopia + Technology 2026 — Key Takeaways,” Goldman Sachs analysts James Schneider, Anmol Makkar, Luya You, Khalil Fenina and Marshall Wong set out three conclusions from a fireside session with Broadcom president and chief executive Hock Tan. First, Broadcom reaffirmed its FY27/FY28 AI revenue targets of $115bn and $230bn while emphasising that supply is constrained. Second, the company expects the majority of AI economics to accrue to owners of leading frontier models. Third, the $35bn XPV partnership is intended to accelerate AI infrastructure buildouts, funding more than 20GW of compute capacity while minimising balance sheet risk.
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