<div id="readability-page-1"><p>Chipmaker Broadcom (AVGO) stock is gaining attention ahead of its fiscal second-quarter earnings report, as Wall Street remains bullish on the company's growing AI opportunity. On Tuesday, five-star UBS analyst Timothy Arcuri raised his price target on AVGO stock from $475 to $490, suggesting nearly 17% upside from current levels. Broadcom is scheduled to report fiscal Q2 earnings on June 3.</p><h3>Claim 55% Off TipRanks</h3><ul><li>Unlock  hedge fund-level data  and  powerful investing tools  for smarter, sharper decisions  </li><li> Discover top-performing stock ideas and upgrade to a portfolio of market leaders with  Smart Investor Picks  </li></ul> <p>For context, Broadcom designs and supplies semiconductor chips and infrastructure software used across data centers, networking, broadband, and wireless systems.</p> <h2><strong>UBS Stays Bullish on AVGO Stock</strong></h2> <p>Arcuri said Broadcom has changed some AI chip orders for Anthropic from full-rack systems to a more standardized ASIC setup. While this reduces near-term revenue, the newer setup carries higher profit margins.</p> <p>Because of this change, he lowered his estimates for Anthropic-related revenue at Broadcom. The analyst now expects around $8 billion in 2026 and $22 billion in 2027, down from previous forecasts of $21 billion and $23 billion. Most of the cut reflects a slower early ramp-up phase of the deal. Arcuri also reduced his fiscal 2027 AI revenue forecast for AVGO to $133 billion from $145 billion and slightly lowered his 2027 earnings estimate to $21.14 per share.</p> <p>Despite the lower forecasts, UBS still expects Broadcom to deliver revenue guidance above Wall Street estimates of roughly $22 billion. Arcuri also remains bullish on AVGO stock, saying strong AI demand could help the company continue beating market expectations in the coming quarters. He expects AI revenue to reach $13.6 billion in the fiscal third quarter.</p> <p>Overall, the analyst said the recent rally in semiconductor stocks has pushed valuations higher across the sector, which helped support its higher price target for AVGO despite lowering some revenue forecasts.</p> <h2><strong>Is AVGO a Good Stock to Buy?</strong></h2> <p>On Wall Street, Broadcom stock holds a Strong Buy consensus rating, based on 26 Buys and four Holds assigned in the last three months. The average AVGO stock price target of $477.81 indicates 13.57% upside potential from current levels.</p></div>

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<p>UBS analyst Timothy Arcuri raised Broadcom's (AVGO) price target from $475 to $490 ahead of its Q2 earnings report, indicating a potential 17% upside. Despite lowering revenue forecasts for AI-related sales, UBS remains bullish, expecting strong demand to help Broadcom exceed market expectations. The stock holds a Strong Buy consensus rating with an average target of $477.81, suggesting a 13.57% upside.</p>

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AVGO Stock Price Forecast — UBS Raises Target to $490 Ahead of Q2 Earnings