The AI semiconductor complex just pulled back, creating a setup worth taking seriously. AMD (NASDAQ:AMD | AMD Price Prediction) has declined 16.5% in the past week. Arm (NASDAQ:ARM) is off 26.78% in a month. Broadcom (NASDAQ:AVGO) has held up better.
Our 24/7 Wall St. price target model rates all three a buy with 90% confidence, and the setup for the next leg higher is closer than current levels suggest.
24/7 Wall St. Price Target Summary
| Ticker | Current | 24/7 Wall St. Price Target | Upside | Action |
|---|---|---|---|---|
| AMD | $442.30 | $566.25 | 28.02% | BUY |
| AVGO | $380.03 | $408.78 | 7.57% | BUY |
| ARM | $244.74 | $289.64 | 18.35% | BUY |
The Pullback That Reset the Setup
AMD is up 112.28% year to date and 161.79% over one year, but sits 2% below its 52-week high of $584.73. Q1 FY2026 delivered revenue of $10.25 billion, up 37.9% YoY, with Data Center up 57% and non-GAAP EPS of $1.37.
Broadcom guided Q3 revenue to $29.4 billion with AI semi revenue of $16 billion, growing over 200% YoY.
Arm’s Q4 FY2026 posted $1.49 billion revenue, up 20.1%, with licensing up 29% and CEO Rene Haas flagging more than $2 billion in AGI CPU demand through FY2028.
How We Calculated These Targets
The 24/7 Wall St. price target blends trailing P/E, forward P/E, and analyst targets, then applies our 247Factor adjustment layer scoring sector momentum, analyst consensus, earnings acceleration, volatility, price position, and social sentiment.
For AMD, the final factor came in at 1.137, boosted by 82% bullish analyst consensus and offset by 50% mega-cap dampener. AVGO’s factor of 1.147 and ARM’s 1.11 reflect similar tailwinds tempered by beta and market-cap constraints. ARM’s beta of 3.77 is the biggest drag on its factor.
Why Bulls See a Breakout Ahead
The bull case: AI infrastructure capex is compounding faster than sell-side models. AMD’s Meta deal covers up to 6 gigawatts of Instinct GPUs.
Broadcom CEO Hock Tan targets $100 billion in AI sales by 2027, with Q2 AI revenue at $10.8 billion, up 143% YoY.
Arm’s data-center TAM guides to more than $100 billion by 2030 with an anchored roster including Google Axion, Microsoft Cobalt, and NVIDIA Vera.
Bull-case one-year prices reach $629.62 on AMD, $532.36 on AVGO, and $430.26 on ARM. Analyst consensus targets: $575.49 for AMD, $525.44 for AVGO, $300.73 for ARM.
What Could Go Wrong
Valuation is the primary risk. ARM trades at trailing P/E of 310 and forward P/E of 118. AMD’s forward P/E of 69 is rich against its PEG of 1.16. Export controls remain a live risk after AMD absorbed $800 million in Q2 2025 charges tied to MI308 shipments.
Arm faces Qualcomm litigation and 25% U.S. semi import tariff. Bears counter that AMD’s prior margin compression reflected one-time China charges rather than structural weakness, and Arm’s operating margin dip reflects R&D up 43% YoY funding AGI CPU.
Bear-case one-year floors: $436.66 on AMD, $361.62 on AVGO, $229.75 on ARM.
How the Three Stack Up
Broadcom offers the cleanest AI-infrastructure exposure at the lowest forward multiple: forward P/E of 20, operating margin of 49%, and PEG of 0.429. Our 7.57% upside looks conservative given the $16 billion Q3 AI guide.
AMD offers the highest growth relative to price, with quarterly earnings growth of 91.2%. Arm is the highest-beta, highest-multiple name, which explains why our target reflects 18.35% rather than the analyst’s headline number.
Our AMD target looks fair, our AVGO target conservative, and our ARM target appropriately cautious.
The Verdict: BUY All Three, Weight Broadcom Heaviest
I rate all three buy at 90% confidence, with 24/7 Wall St. price targets of $566.25 on AMD, $408.78 on AVGO, and $289.64 on ARM.
The accelerating AI capex cycle tips the scale. The setup looks more attractive on further weakness if Q3 hyperscaler capex guidance holds, and less so if forward AI revenue guides moderate. On a risk-adjusted basis, Broadcom is my highest-conviction name in this trio.
| Ticker | 2027 Target | 2031 Target |
|---|---|---|
| AMD | $566.25 | $905.13 |
| AVGO | $408.78 | $512.89 |
| ARM | $292.85 | $413.83 |
These base-case endpoints assume the AI infrastructure cycle continues to compound. Significant upside could materialize if hyperscaler capex accelerates further; downside would come from export control expansions or an AI capex digestion phase.
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