Microsoft Broadcom stock has caught the attention of investors as shares surged following a major upgrade from UBS, ahead of Broadcom’s highly anticipated Q4 earnings on Thursday, December 11. The rally reflects growing confidence in Broadcom’s leadership in AI infrastructure and custom chip development, including partnerships with tech giants like Microsoft and Google. UBS now projects a price target of $472 per share, signaling optimism for the company’s growth prospects.
UBS Lifts Broadcom Stock Price Target Amid AI Momentum
Timothy Arcuri, UBS’s lead semiconductor analyst, increased Broadcom’s price target from $415 to $472 and maintained a Buy rating. The upgrade emphasizes Broadcom’s role in AI silicon innovation through collaborations with Google on TPUv6p chips, and emerging projects with OpenAI and Microsoft. Arcuri highlighted that Broadcom’s custom ASICs are increasingly replacing traditional GPUs in data centers, further cementing its position as a critical player in AI infrastructure.
The $472 target is the most bullish among the 35 analysts covering Broadcom stock. Other institutions have also raised guidance, including Bank of America ($460) and Morgan Stanley ($443). While the consensus price target averages around $425, this still indicates significant upside potential for investors tracking Microsoft Broadcom stock.
AI Revenue Driving Broadcom’s Growth
Broadcom’s AI-focused initiatives have become the primary engine for revenue growth. Over the first three quarters of 2025, the company reported an average revenue growth of 22.3% and adjusted EPS growth near 42%. Notably, AI-related revenue surged 63% in Q3 alone, contributing $5.2 billion out of $16 billion total revenue.
Goldman Sachs projects that Broadcom could achieve AI revenue growth exceeding 100% in fiscal 2026, fueled by the success of Google TPUs and broader adoption of custom silicon over general-purpose GPUs. Analysts predict AI revenue could reach $40 billion by 2026, more than doubling current levels. Microsoft’s partnership with Broadcom further strengthens confidence that the company can sustain accelerated growth.
Q4 Earnings Expectations
Broadcom will report Q4 earnings after market close on Thursday, with a management conference call at 2:00 PM Pacific. Analysts’ expectations for Microsoft Broadcom stock include:
- Revenue Guidance: $17.4–$17.5 billion
- EPS: $1.87 consensus
- AI Revenue Growth: 63–70% YoY
- Annual EPS Growth: 38% (FY2025), 76% (FY2026)
Investors will closely monitor forward guidance on AI revenue and customer wins. Any upside surprise in these metrics could drive Microsoft Broadcom stock higher, especially given the 119% annual return already achieved.
Valuation and Market Sentiment
Despite strong gains in 2025, with a year-to-date increase of 68.2%, Broadcom stock maintains bullish sentiment. Trading at a forward P/E of 45x, the valuation reflects expected 76% EPS growth in fiscal 2026. Recent minor pullbacks may offer buying opportunities for investors ahead of earnings.
Partnerships with Microsoft, Google, Meta, and OpenAI help diversify revenue and reduce dependence on any single customer, while a $110 billion+ backlog provides multi-year revenue visibility. These factors support continued momentum for Microsoft Broadcom stock through semiconductor cycles.
Looking Ahead
The critical question is whether Broadcom can meet UBS’s $472 price target and projected EPS growth for 2026. Strong AI revenue guidance or additional Microsoft-related collaborations could push the stock higher. With AI adoption accelerating and partnerships solidifying, Microsoft Broadcom stock appears poised for continued investor interest and market leadership in the semiconductor sector.
