Broadcom's AI Semiconductor Boom Fuels Earnings Surge, Analysts Bullish

As of September 10, 2025, Broadcom Inc. (NASDAQ:AVGO) is emerging as a standout player in the cybersecurity industry. The company's AI semiconductor business has seen accelerated growth, leading to solid gross profit margins of 77.19% and robust revenue growth of 28.01%.

This impressive financial performance has prompted CFRA, a leading research firm, to raise Broadcom's price target to $380 from $340 while reiterating a 'Buy' rating. The research firm has also adjusted its earnings estimates for the company, now expecting it to generate $6.71 in earnings per share in 2025, up from the initial estimate of $6.65. CFRA has also increased its FY 2026 EPS estimate to $9 from $8.13 and FY 2027 to $10.95 from $9.82.

The growth in Broadcom's AI semiconductor business is being driven by a growing order base, with existing customers like Alphabet placing higher orders and strengthening the company's revenue base. CFRA has also noted that the addition of a key customer could push Broadcom's sales above the $10 billion mark.

Broadcom's cybersecurity solutions, which leverage the Symantec and Carbon Black portfolios, are also gaining traction. The company provides comprehensive enterprise security solutions across endpoint, network, information, and email security for on-premises and cloud-based environments, detecting and blocking various threats, protecting sensitive data, ensuring business continuity, and enforcing zero-trust security models.