Morgan Staneley Expects Strong Ramp In Broadcom (AVGO)’s Networking And ASICs Segments; Raises PT To $485
Morgan Stanley’s Joseph Moore raised Broadcom’s (AVGO) price target to $485 from $470 and kept an “Overweight” rating ahead of the company’s June 3, 2026 quarterly results. The firm expects strong growth from networking and ASICs and says Broadcom is likely to retain a majority of TPU business. It cited Broadcom’s March 4 fiscal Q1 results: $19.3B revenue (+29% YoY) and $8.4B AI semiconductor revenue (+106%).
Street expectations are being reset upward for AVGO’s AI networking/ASIC momentum, increasing the odds of a positive earnings reaction if guidance holds.
Morgan Stanley raised AVGO’s price target to $485 and expects a strong ramp in networking and ASICs ahead of its June 3 results.
Bias toward upside/less downside into the June 3 after-hours report, with volatility risk if results miss the elevated ramp narrative.
Background
The piece frames AVGO as an AI infrastructure leader heading into its quarterly report, citing both prior strong results (fiscal Q1) and management’s next-quarter guidance.
Why it matters
The actionable element is the analyst PT raise and the specific expectation that networking and ASICs will ramp, with a view that AVGO retains a strong majority of TPU business—factors that can influence positioning into earnings.
Market relevance
Street expectations are being pushed higher for AVGO’s AI networking and ASIC growth, setting up a potentially bullish earnings setup if guidance and ramp narrative confirm.
Market effects
Reinforces positive read-through for AI infrastructure semis (networking + custom silicon/ASIC demand) and supports sentiment around hyperscale AI capex.
Primarily US-listed AI semiconductor sentiment; could spill into broader US tech/semis on earnings reaction.
Global AI hardware supply/demand narrative (custom accelerators, networking) remains a key driver for international semiconductor peers.
Alternative perspectives
If AVGO’s networking/ASIC ramp is already priced in, any deceleration in AI semiconductor revenue growth or margin commentary could trigger a sharp post-earnings pullback despite raised PT.
Capacity/line-of-sight claims (through 2028; AI chip revenue >$100B in 2027) may face execution risk; tariff/onshoring discussion in the article is not directly quantified for AVGO.
Key entities
- companyBroadcom Inc.
Subject of the article; Morgan Stanley raised its price target to $485 and expects strong networking and ASIC ramp into its June 3 quarterly report.
- analyst_firmMorgan Stanley
Raised AVGO’s price target and maintained an Overweight rating ahead of results.
- analystJoseph Moore
Morgan Stanley analyst who raised the PT and outlined the networking/ASIC and TPU-retention thesis.
