Broadcom (AVGO) stock has risen 3.0% over the past week, 0.8% over the past month, and an impressive 46.7% over the past year. Wall Street’s analysts are strongly bullish overall, with a StrongBuy consensus and forecasting a move toward a 12‑month average price target of $457.75 from the last closing price of $342.76.
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Against this upbeat backdrop, analyst Gil Luria of D.A. Davidson has taken a more cautious stance. He initiated coverage on AVGO with a Hold (NEUTRAL) rating and a $335 price target on February 13, 2026, implying modest downside from current levels despite the broader market optimism.
Luria argues that Broadcom’s AI ASIC business may be “sitting on a shrinking iceberg” as the largest cloud and AI customers push to internalize more of their hardware stack. In his view, this shift could pressure supplier economics and raises doubts about whether Broadcom deserves a valuation premium over AI leader NVIDIA.
He acknowledges Broadcom’s edge in full-stack execution, especially in solving complex rack-scale integration problems where many rivals struggle. However, he notes that hyperscalers have a long history of squeezing partner margins through unbundling, multi-sourcing, and paying only for clear value-add, trends he expects to intensify in AI ASICs.
On the positive side, Luria highlights networking as Broadcom’s durable franchise as data centers move from 400G to 800G and toward 1.6T, and as co-packaged optics increase the importance of Broadcom’s core strengths. He values AVGO at 30x his CY26 EPS estimate and concludes that around 60% of its value tied to AI ASICs may not justify such a rich multiple. Never miss a stock rating. Find all the latest ratings on TipRanks’ Top Wall Street Analysts page.