Quantitative models place the AVGO stock forecast 2030 P/E ratio around 18-20, assuming sector multiples expand modestly on global semiconductor demand resilience. The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. For a number of reasons a very conservative growth rate is used that cannot exceed that of a country's GDP growth. In this case we have used the 5-year average of the 10-year government bond yield (2.8%) to estimate future growth. In the same way as with the 10-year 'growth' period, we discount future cash flows to today's value, using a cost of equity of 9.1%. The move comes as Broadcom intensifies its competition with chip giant Nvidia (NVDA) in the development and sale of custom AI chips. Last week, the company beat both sales and earnings expectations for the third quarter of fiscal 2025, driven by surging demand for custom AI accelerators (XPUs) and continued momentum from its VMware integration. Analysts’ AVGO stock forecast 2030 anticipates steady buyback programs, which could reduce outstanding shares by 10%-12%, boosting per-share metrics.
