TD Cowen Raises Broadcom (AVGO) Price Target to $500, Cites AI Infrastructure Shift

TD Cowen raised its price target on Broadcom (NASDAQ: AVGO) from $405 to $500 on May 15, 2026, while maintaining a Buy rating, pointing to what the firm described as an important shift in AI infrastructure dynamics. The action came alongside a broader wave of bullish analyst activity that pushed shares up 4.3% in the afternoon session on the day of the announcements, before AVGO closed at $420.71 on Monday, May 18, 2026.

What Changed

• TD Cowen's new price target: $500, raised from $405 on May 15, 2026, with a Buy rating maintained.
• AI revenue growth: Broadcom's AI revenue is reported to be up 140% in Q2 2026, according to Yahoo Finance analyst commentary.
• Analyst consensus: As of May 1, 2026, Broadcom holds a Strong Buy consensus from Wall Street, with 17 Strong Buy ratings, 36 Buy ratings, and just 4 Hold ratings — and zero Sell or Strong Sell recommendations.
• Growth drivers cited: VMware integration progress and networking demand are highlighted as key factors fueling the company's momentum, per analyst reports.
• Multiple firms acted: TD Cowen was one of several firms that significantly raised price targets on the same day, according to Yahoo Finance reporting.

Why It Matters

The 140% reported jump in AI revenue during Q2 2026 signals that Broadcom's positioning in AI networking and custom silicon is translating into tangible top-line results, not just long-term promise. TD Cowen's explicit reference to a "shift in AI infrastructure dynamics" suggests analysts believe the company's product mix — spanning both chips and enterprise software through VMware — is becoming more central to how large-scale AI deployments are built and operated.

The VMware integration, which has been a focus for investors since Broadcom's acquisition closed, appears to be contributing meaningfully to the growth narrative analysts are pricing in. With networking demand cited as a secondary accelerant, Broadcom's revenue base looks increasingly diversified within the AI buildout theme, according to the analyst commentary referenced in Yahoo Finance reporting.

Wall Street View

Broadcom commands one of the strongest analyst consensus profiles in the large-cap technology space. The May 1, 2026 snapshot shows 53 Buy-equivalent ratings against just 4 Hold ratings and no Sell-side opposition. TD Cowen's target raise to $500 reflects the upper end of recent analyst optimism, though multiple firms moved their targets higher simultaneously on May 15, suggesting broad conviction rather than an isolated call. The forward P/E of 23.0x — notably lower than the trailing P/E of 81.9x (TTM — may not reflect latest quarter) — indicates the Street is modeling substantial near-term profit growth into its estimates.

Investor Takeaway

With AI revenue reportedly up 140% in Q2 2026 and TD Cowen lifting its target to $500, the analyst community is making a clear statement that Broadcom's dual role in custom AI silicon and enterprise software is gaining traction. The near-unanimous Buy consensus — 53 positive ratings, zero Sells — leaves little room for skepticism on Wall Street, though investors will want to watch whether the VMware integration continues to contribute as analysts expect. The reported growth figures, if sustained, would go a long way toward justifying the premium valuation the market currently assigns to the stock.