AVGO is a Hold for Most and a Buy for Aggressive Investors. Price Target: $540/sh by 12/31/2027

AVGO is my favorite company in the S&P 500, even slightly ahead of NVDA as a result of having better diversity in products.  It is presently trading at $398/sh as of market close on November 26, 2025.  AVGO has a blended P/E of 58.34 x according to Fastgraphs and is therefore trading at a high premium (overvaluation).  However, I believe it may continue to trade at a high premium for at least the next 1-2 years, as it just added a fourth major customer in GOOG for it's TPU's.  

In the image above, the black price line is well above the orange Fair Value Ratio line, indicating that AVGO is trading at a premium as of this writing.  

In the above image, I used a slightly lesser P/E of 43.97 as I believe Broadcom will likely continue to trade at a premium for much of the time through 2027, so this is still an overvalued P/E forecast based on analyst projections.  This would yield a max price of $540/share by 12/31/2027 or an increase of +36% from the November 26, 2025 close.  I think this is a reasonable price target for a two year period for a great company in Broadcom who is at the forefront of the AI transformation.  

I think for investors who already hold a large position in AVGO, that the stock is probably a "Hold", but one could add to their positions on pullbacks of 10% or more.  

Best wishes to all investors and as always, please do your own research before buying stocks/ETF's.  

References: 

Disclaimer: This blog has been created for sharing my personal investment ideas only. I do not receive any compensation for this blog or the content within. I am not an investment advisor or professional. This blog is my own personal opinion and is not meant to be a recommendation of the purchase or sale of any stock or ETF. Please do your own due diligence and research before deciding to purchase any investments of your own.

  




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