Barclays analyst Tom O\'Malley raised the price target on Broadcom Limited (NASDAQ: AVGO) to $400.00 (from $265.00) while maintaining a Overweight rating.

The analyst comments: "New ASIC customer coming in the 2H of FY26 (likely split $5B each in FQ3/FQ4). Outside of the new customer, the core 3 ASIC customers are also doing better than expected and likely surpass the 60% Y/Y AI revenue target even before the new customer layers in. Intra-quarter, we heard from the company that two potential customers were taping out chips through the end of this year with potential to go into production next year. One is now confirmed, and we would flag the potential for a 5th to soon join the ranks. Outside of ASICs, the company is currently short on EMLs (explains transceiver constraints) and is doubling capacity over the next 9 months. The company is firing on all cylinders with clear line of sight for growth supported by significant backlog."