BofA Securities raised its price target on Broadcom (NASDAQ: AVGO) to $460 from $400, while maintaining a Buy rating.

The firm analyzed Google's recently launched Gemini 3, which was trained entirely on TPUs, and examined the competitive profile of the latest TPUv7 relative to Nvidia's Blackwell Ultra architecture. BofA also published updated TPUs forecasts by unit volume, ASPs, and product generations.

Overall, the analyst said rising TPU adoption was a meaningful positive for Broadcom, a core design partner. BofA estimated that TPU ASPs, currently around $5,000-$6,000, could rise to $12,000-$15,000 in calendar 2026, with units expanding from ~2 million in CY2025 to 3 million or more the following year. Upside could reach 3.6-3.8 million units, depending on demand from Google's internal operations and potentially Anthropic or Meta.

BofA maintained its Buy rating and lifted its valuation basis to 33x CY27E, still within the historical 11x-40x range. The firm noted slight reductions to Broadcom's margin assumptions due to increased compute/ASIC mix, but left EPS estimates mostly unchanged.