(Updated to include BofA's commentary)

BofA Securities raised its price target on Broadcom (AVGO) to $460 from $400, citing increasing Tensor Processing Units leverage and anticipated unit and ASP upside in 2026/2027.

The brokerage highlighted the successful launch of Gemini 3, trained entirely on Alphabet's (GOOG, GOOGL) Google's custom TPUs-designed and sold by Broadcom-and the potential for Google to rent out TPUs to external customers in the future.

Overall, the brokerage views the rising TPU opportunity as a meaningful positive for Broadcom. It expects that current estimates of around $5,000-$6,000 ASP and 2 million units in 2025 to rise to $12,000-$15,000 ASP and 3 million+ units in 2026.

The brokerage also mentioned the risks. First, if Google chooses to sell TPUs directly to customers as merchant silicon-rather than only renting them through GCP-it could introduce new competition for Broadcom across other custom ASIC accounts, including Meta, ByteDance, and OpenAI. Second, Google may also add MediaTek to its design partner list for next-gen TPUv8, potentially reducing Broadcom's share.

Broadcom has an average rating of Buy and mean price target of $417.31, according to analysts polled by FactSet.

(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)

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