Broadcom Just Hit New All-Time Highs Again. Where Will AVGO Stock Go Next?

While much of the tech industry is still regaining its balance, Broadcom (AVGO) is charging ahead, cementing its role as essential artificial intelligence (AI) infrastructure. A longtime Wall Street favorite, the semiconductor and software giant reignited investor attention with blowout quarterly earnings this year. Plus, the launch of its Tomahawk Ultra Ethernet switch, built for lightning-fast, high-performance AI workloads, has turned heads across Wall Street and Silicon Valley alike.

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Behind the scenes, Meta (META) is throwing down billions to build out its AI empire, and Broadcom is right there, powering those data centers with custom chips. Add in Nvidia’s (NVDA) rocket ride toward a $4 trillion valuation, and Broadcom’s role in the AI stack starts looking even more vital.

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All that heat finally bubbled up on Sept. 11, when AVGO hit a new all-time high of $374.23. And with AI spending just getting started, where does Broadcom go next?

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Founded in 1961 and based in Palo Alto, Broadcom is a tech powerhouse, currently valued at a market capitalization of $1.6 trillion. Its chips and software run deep, fueling everything from cloud giants and smart devices to industrial automation. A leader in networking, wireless, and enterprise IT, Broadcom blends hardware muscle with software smarts, making it one of the unsung heroes behind today’s connected world.

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Over the past 52 weeks, the AVGO stock has skyrocketed nearly 120%, leaving the S&P 500 Index’s ($SPX) 17.4% gain and the Semiconductor Ishares ETF’s (SOXX) 15.2% uptick way behind. Over the past three months alone, AVGO surged 46.7%, notching 24 new highs along the way. Traders have been riding the wave, fueled by AI tailwinds and solid fundamentals.

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Technically, the chip stock is still flashing strength. RSI sits near 65, not yet in overbought territory, and it’s trading well above key moving averages. For now, Broadcom’s price action says the uptrend’s still alive and kicking.

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AVGO is not coming cheap, and investors don’t seem to mind one bit. Trading at 66.35 times forward earnings and 25.87 times forward sales, the stock is priced well above the sector average. Wall Street is clearly betting that Broadcom can keep scaling, riding the AI wave while defending its margins like a pro. When a stock commands numbers like these, it is usually because the market sees more than just short-term upside—it sees a long-term play with serious staying power.

And it’s not just about growth. Broadcom sweetens the deal with consistent dividend payments, delivering a forward annual dividend of $2.36 per share, yielding 0.82%. With 14 consecutive years of dividend hikes and a $0.59 per share quarterly dividend paid out on June 30 and set to pay out again on Sept. 30, this tech name offers both growth and stability.

Broadcom’s Q2 2025 earnings, dropped on Sept. 4, did not just top estimates but made a statement. The chip-and-software giant generated $16 billion in revenue, up 22% year-over-year (YoY) and just ahead of Wall Street’s call. Demand for Broadcom’s AI-focused semiconductor solutions and steady contributions from its VMware unit fueled this surge.

Meanwhile, adjusted EBITDA surged 30% annually to hit $10.7 billion, while non-GAAP EPS rose to $1.69, just enough to keep bulls fired up.

A standout highlight was the 47% year-over-year (YoY) surge in free cash flow to $7 billion, bringing Broadcom’s total cash and equivalents to $9.47 billion by quarter’s end, underscoring both its financial strength and operational resilience.

Wall Street’s feeling bullish on AVGO. The stock currently holds a “Strong Buy” consensus overall. Out of 39 analysts covering the stock, 34 are in the bull camp, recommending a “Strong Buy,” two are playing a bit cooler with a “Moderate Buy,” and the remaining three are on the sidelines with a “Hold” rating.

The average price target of $365.19 suggests a potential decline of less than 1% from current levels. Meanwhile, the Street-high target of $415.56 signals the stock could climb as much as 13% from here.

On the date of publication, Sristi Suman Jayaswal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com