Broadcom’s AI Revenue Soars with UBS Price Target Hike

NEW YORK, NY — Broadcom Inc. has solidified its position as a leader in the AI semiconductor market, according to UBS analyst Timothy Arcuri, who raised the company’s price target from $290 to $345 while maintaining a Buy rating.

This upgrade, announced on August 25, 2025, follows Broadcom’s impressive financial performance. For the second quarter of 2025, the company reported a 20% revenue increase year-over-year, reaching $15 billion. Notably, AI-related revenue surged by 46% to $4.4 billion during this period.

Hock Tan, the CEO of Broadcom, has forecasted even stronger performance, estimating AI revenue will climb to $5.1 billion in the third quarter of 2025. This growth is largely attributed to the increasing demand for advanced networking solutions driven by major tech firms.

The company’s Tomahawk 6 Ethernet switch, which enables data speeds of up to 102.4 terabits per second, and its proprietary Scale Up Ethernet architecture, are instrumental in supporting the large-scale AI workloads for hyperscalers like Google, Meta, and Microsoft.

Arcuri’s analysis points to the manufacturing ramp-up of Google’s TPUv6p AI chips as a key driver for Broadcom’s growth. He anticipates that continued production increases will contribute significantly to revenue spikes over the next couple of years.

Broadcom’s strategy focuses on high-margin segments within AI and custom silicon solutions. The company’s reported 90% market share in cloud switch chips further emphasizes its dominance in this rapidly growing sector.

Looking ahead, investors are eagerly awaiting Broadcom’s upcoming earnings report scheduled for September 4, 2025. The anticipation of $7 billion in planned shareholder returns for Q2 2025 also suggests a commitment to rewarding investors as the company navigates through favorable market conditions.