---
title: "Citi raises Broadcom's target price to $415, partnering with OpenAI to develop AI chips expected to bring in an additional $100 billion in revenue"
description: "Citi raised Broadcom's target stock price to $415 due to its agreement with OpenAI, which is expected to bring approximately $100 billion in additional revenue to Broadcom over the next few years. Cit"
type: "news"
locale: "en"
url: "https://longbridge.com/en/news/260980672.md"
published_at: "2025-10-14T03:57:57.000Z"
---

# Citi raises Broadcom's target price to $415, partnering with OpenAI to develop AI chips expected to bring in an additional $100 billion in revenue

> Citi raised Broadcom's target stock price to $415 due to its agreement with OpenAI, which is expected to bring approximately $100 billion in additional revenue to Broadcom over the next few years. Citi also raised its revenue and earnings per share forecasts for Broadcom for the fiscal years 2026 and 2027, from $88.5 billion and $7.89 to $93.5 billion and $8.35, and from $93 billion and $8.47 to $130 billion and $11.65

Citigroup released a report stating that Broadcom (AVGO.US) has reached an agreement with OpenAI, under which OpenAI will deploy 10 gigawatts of Broadcom AI chips. Citigroup estimates that this agreement could bring approximately $100 billion in additional revenue to Broadcom over the next few years and about $8 in earnings per share. Accordingly, Citigroup has raised its financial forecast for Broadcom and increased the target stock price from $350 to $415, reiterating its "Buy" rating.

OpenAI has announced a total of 26 gigawatts of computing capacity to date. Citigroup AI analyst Heath Terry expects the cost per gigawatt to be around $50 billion, which means that cumulative capital expenditures will reach $1.3 trillion by 2030; it is expected that OpenAI's revenue will grow from approximately $12.5 billion in 2025 to $163 billion in 2030.

Based on this, Citigroup has revised its revenue and earnings per share (including equity incentives) forecasts for Broadcom for the fiscal year 2026, from $88.5 billion and $7.89 to $93.5 billion and $8.35; at the same time, it has revised its revenue and earnings per share (including equity incentives) forecasts for the fiscal year 2027, from $93 billion and $8.47 to $130 billion and $11.65

### Related Stocks

- [AVGO.US - Broadcom](https://longbridge.com/en/quote/AVGO.US.md)

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> **Disclaimer**: This article is for reference only and does not constitute any investment advice.