Wells Fargo, Citi Upgrade Broadcom as Apollo, Blackstone Eye $35B Financing
Private credit firms are reportedly in talks to fund infrastructure expansion, while major banks revise earnings estimates upwards ahead of the company’s next earnings report.
Wells Fargo and Citigroup have independently raised their price targets for Broadcom Inc (NASDAQ:AVGO), reinforcing bullish sentiment around the semiconductor manufacturer as artificial intelligence infrastructure spending accelerates. The upgrades come as the market anticipates strong earnings visibility for the chipmaker, which designs and supplies semiconductor devices and infrastructure software solutions globally.
On 14 May 2026, Wells Fargo increased its price target for Broadcom to $545 from $430, maintaining an Overweight rating. The firm simultaneously raised its fiscal 2027 and fiscal 2028 revenue estimates by 22% and 19% respectively, while lifting earnings per share forecasts by 28% and 23% relative to consensus expectations. Wells Fargo analysts attributed the revision to an AI semiconductor revenue opportunity running 30% to 40% above prior assumptions.
On the same day, Citigroup raised its price target to $500 from $475, keeping a Buy rating on the shares. Citi analyst Atif Malik cited stronger AI demand and noted that Broadcom’s April quarter results were likely to come in modestly above expectations. The bank highlighted improving earnings visibility as a key driver for the upgrade ahead of the company’s upcoming earnings release.
Parallel to the analyst upgrades, reports from 8 May 2026 indicated that Apollo Global Management and Blackstone were in discussions with Broadcom regarding a potential $35 billion financing package. The proposed deal is tied to the company’s AI infrastructure expansion efforts and would support the development of AI-focused semiconductor products. If completed, the financing could rank among the largest private credit deals executed to date.
While Broadcom remains a central figure in the AI hardware narrative, market observers continue to weigh its valuation against peers. The concurrent activity from major investment banks and private credit giants underscores the intense capital allocation flowing into the semiconductor sector as firms race to expand capacity for AI workloads.
