Top analysts at Morgan Stanley, UBS, and Bank of America raised their price targets for Broadcom (AVGO) stock, citing higher demand for the company’s custom artificial intelligence (AI) chips. Broadcom is also expected to benefit from the growing traction for Alphabet-owned Google’s (GOOGL) TPUs (Tensor Processing Units), as it designs these chips.
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UBS, Morgan Stanley Raise Price Targets for AVGO Stock
Following meetings with several contacts in Asia, Morgan Stanley analyst Joseph Moore raised his price target for Broadcom stock to $443 from $409 and reiterated a Buy rating. Moore also increased the price target for Nvidia (NVDA), noting broad-based strength in AI across the board.
The 5-star analyst expects the AI chip revenues of Broadcom and Advanced Micro Devices (AMD) to grow at a slightly faster rate than Nvidia’s in calendar year 2026. That said, he continues to be optimistic about Nvidia’s ability to sustain its leading position, and contends that the competitive threats are “overstated.” Moore now expects Broadcom to deliver ASIC (application-specific integrated circuits) revenue of $27.21 billion in Fiscal 2026 and $59.475 billion in Fiscal 2027. The analyst highlighted that his Fiscal 2027 revenue forecast is higher than the Street’s consensus estimate, backed by solid TPU supply chain checks.
While Moore is optimistic about the demand backdrop for Broadcom’s offerings, he noted a “few caveats.” Notably, Moore said that Google is moving ahead with a homegrown TPU variant in partnership with MediaTek, which the analyst views as a potential long-term risk but one that does not significantly alter his base-case view. Another caveat noted by Moore was that Meta Platforms’ (META) custom MTIA (Meta Training Inference Accelerator) chip orders have been pushed back, as the social media giant is now expected to use Google’s TPU instead.
Meanwhile, UBS analyst Timothy Arcuri increased his price target for Broadcom stock to $472 from $415 and reiterated a Buy rating. Additionally, Bank of America analyst Vivek Arya reaffirmed a Buy rating on Broadcom stock and raised his price target to $460 from $400, noting TPU-related tailwinds.
Is AVGO a Good Stock to Buy?
With 29 Buys and two Holds, Wall Street has a Strong Buy consensus rating on Broadcom stock. The average AVGO stock price target of $409.25 indicates 6% upside potential from current levels.
