Macquarie upgraded Broadcom (NASDAQ: AVGO) from ‘Neutral’ to ‘Outperform’ and raised its price target to $490 on September 2, citing reduced concerns over insourcing risk and strong growth prospects in the semiconductor business.

Broadcom’s third-quarter fiscal 2026 revenue rose 33% sequentially to $29.6 billion, in line with Macquarie’s estimate, but gross profit margin declined 2 percentage points as lower-margin semiconductor revenue grew faster than higher-margin software. 

Despite the quarterly decline, Broadcom continues to generate an impressive 76.28% gross profit margin over the past 12 months, with net profit exceeding Macquarie’s estimates by 4%.

“Broadcom achieved record revenue, operating…