Mizuho Analysts Are Bullish on Custom Chips: Broadcom Could Have 87% Compound Annual Growth Rate Through 2028

Broadcom (AVGO), an innovator in the semiconductor solutions industry, has been a value creator with returns of more than 145% in the last 52 weeks. This rally has arrived on the back of AI-driven demand which has translated into top-line growth acceleration coupled with cash flow upside. 

Recently, Mizuho Securities reiterated an “Outperform” rating for AVGO stock after a meeting with Broadcom executives. A key reason for the bullish outlook was estimates related to the company's AI revenue trajectory. From consensus estimates of $100 billion for 2027, the AI revenue potential has increased to $120 billion. Further, AI revenue is expected to swell to $132 billion by 2028, implying a three-year compound annual growth rate (CAGR) of 87%.