Broadcom and Arm Holdings both hit all-time highs this week, driven by strong earnings and a wave of bullish analyst calls. Broadcom (AVGO) climbed to around $410, up 23% year-to-date, after UBS raised its price target from $475 to $490 ahead of the company’s fiscal Q2 earnings on June 3. UBS analyst Timothy Arcuri sees roughly 17% upside, even as he trimmed revenue estimates tied to Anthropic AI chip orders due to a shift to higher-margin standardized ASIC configurations. He still expects Broadcom to beat the $22 billion Q2 revenue consensus and projects AI revenue of $13.6 billion in Q3 alone, keeping the company on track toward CEO Hock Tan’s $100 billion AI revenue target for 2027.
Meanwhile, Arm Holdings (ARM) surged past $242, more than doubling this year, after a strong Q4 report showed 29% licensing revenue growth and 11% royalty growth. Rosenblatt raised its target to $270, Jefferies to $290, and Sanford C. Bernstein initiated coverage with a $300 price target, citing a “renaissance of CPUs.” However, multiple law firms have launched preliminary securities-fraud investigations following reports of U.S. antitrust scrutiny of ARM’s licensing model, though no formal charges have been filed.
