Broadcom (AVGO) Stock Forecast: What Could Drive It in 2026
Short answer
No one can reliably forecast AVGO's price, and Walnut does not publish targets. What is useful is the setup. For Broadcom, the drivers that could push it higher are real, and so are the risks that could weigh on it. Below is each side plus a framework to form your own view. This is descriptive, not a prediction or a recommendation.
What could drive Broadcom (AVGO) higher?
1. Custom AI accelerators (XPUs) for hyperscalers.
Broadcom is the leading designer of custom AI chips for hyperscaler customers. Google TPU, Meta MTIA, and rumored OpenAI silicon are all Broadcom-designed. This business is growing rapidly as hyperscalers seek alternatives to buying NVIDIA GPUs at retail prices.
2. AI networking silicon.
AI data center networking (high-speed Ethernet switches, optical interconnects, programmable network processors) is one of the fastest-growing semiconductor segments. Broadcom dominates Ethernet switch silicon (used in Arista, Cisco, Juniper systems).
3. VMware integration and software margins.
The VMware acquisition (~$70 billion) is being integrated aggressively, with significant cost reductions and price increases on VMware products. Software now contributes a meaningful portion of operating income with high margins.
4. Dividend growth.
Broadcom has a long history of consistent dividend growth and has emerged as one of the larger payers among mega-cap tech. Capital return is a meaningful part of the total return story.
What could weigh on AVGO?
Customer concentration in custom AI silicon (top customers are Google, Meta, possibly OpenAI). VMware integration creates customer pushback and potential churn in the enterprise software business.
How to think about a AVGO forecast
Rather than chasing a price target, it tends to help to weigh the drivers above against the risks, decide how long you are willing to hold, and size the position so a wrong call is survivable. A “forecast” is really a probability-weighted view of those drivers playing out, not a number.
For the full picture, see the AVGO guide and whether AVGO is a buy. In Walnut you can pressure-test the thesis against your real portfolio.
The bottom line on the AVGO outlook
The honest bottom line: Broadcom (AVGO)'s outlook hinges on whether its drivers (above) outpace its risks, and no one can promise which wins. Treat any AVGO forecast as a scenario, not a certainty, and decide from your own thesis and time horizon. Walnut is not an investment adviser.
Build a basket around AVGO with Walnut
Use Broadcom as one constituent in a thematic basket Walnut's AI helps you assemble. Describe a thesis you believe in, the AI proposes the holdings and weights, and you approve before any broker order.
FAQ
What is the forecast for Broadcom (AVGO)?
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No one can reliably predict where AVGO will trade, and Walnut does not publish price targets. What is more useful is the setup: the drivers that could push Broadcom higher and the risks that could weigh on it. This page lays out both so you can form your own view. Not a recommendation.
What could drive AVGO higher?
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The main growth drivers are Custom AI accelerators (XPUs) for hyperscalers; AI networking silicon; VMware integration and software margins. Whether they play out is the real question, not a guaranteed path.
What are the risks to AVGO?
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Customer concentration in custom AI silicon (top customers are Google, Meta, possibly OpenAI). VMware integration creates customer pushback and potential churn in the enterprise software business.
Will AVGO stock go up in 2026?
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Nobody knows, and anyone who says they do is guessing. Broadcom's direction depends on whether the drivers above outweigh the risks, plus the broader market. Focus on the thesis and your time horizon rather than a single-year call.
Is AVGO a buy?
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That depends on your thesis, time horizon, and what you already own, not on a forecast. See the AVGO "is it a buy?" page for a framework. Walnut is not an investment adviser.
Walnut is informational, not investment advice. This page describes drivers and risks; it is not a price forecast, target, or recommendation. Markets are uncertain and past performance does not predict future results.