Broadcom (AVGO) stock has risen 48% in 2005, driven by strong AI demand for its custom ASIC chips and networking products. The stock has pulled back in recent weeks, as investors question the returns from heavy AI spending by big tech firms and worry about rich valuations. Still, some buyers are stepping in. Cathie Wood bought the dip in Broadcom stock by purchasing 31,573 shares via the ARK Next Generation Internet ETF (ARKW) on January 8. More broadly, Wall Street remains bullish on AVGO stock and sees solid upside potential in 2026, supported by steady demand for Broadcom’s AI chips and networking gear.
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Top Analysts Are Upbeat About Broadcom Stock
Today, Bernstein analyst Stacy Rasgon maintained an Outperform rating on Broadcom with a $475 price target. He said fears about new rivals and customer-built chips are overstated after a long meeting with management. Rasgon pointed to Broadcom’s scale and strong supply chain in custom AI chips. He also noted that while Nvidia (NVDA) sets the pace in AI innovation, Broadcom is uniquely positioned to help customers keep up with that roadmap.
Earlier this week, Goldman Sachs analyst James Schneider added Broadcom to the firm’s U.S. Conviction List. He said Broadcom’s strong position in enterprise networking chips should help it gain share in custom processors used by major U.S. cloud firms. Goldman kept a Buy rating on the stock with a $450 price target, implying 35% upside from current levels.
Likewise, JPMorgan Chase has picked Broadcom as its top name in the chip sector. 5-star analyst Harlan Sur expects AI-related revenue to reach $55 billion to $60 billion in fiscal 2026 and keeps a Buy rating with a $475 price target. He said data center spending is still rising and could grow sharply again next year, which should support chipmakers across the supply chain, including networking and memory firms.
Is AVGO Stock a Buy, Sell, or Hold?
With 27 Buys and two Holds, Broadcom stock scores a Strong Buy consensus rating. The average AVGO stock price target of $461.42 indicates 38.78% upside potential.
