Broadcom Inc. (AVGO) isn’t the loudest name in AI, but it is starting to show up in more analyst top-pick lists as Wall Street looks toward 2026. Big banks see the stock as well-placed to benefit from the next phase of AI-driven data center spending.
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While much of the AI spotlight stays on GPUs, analysts believe the next phase of AI growth will depend just as much on custom chips and high-speed networking, where Broadcom plays a key role. That view is shared by Bank of America (BAC), J.P. Morgan (JPM), and Jefferies (JEF), making Broadcom a rare point of agreement among major Wall Street firms.
Why Bank of America Likes Broadcom
Top Bank of America analyst Vivek Arya has named Broadcom as one of his top large-cap chip picks for 2026. The bank sees custom chips as a key growth area as cloud companies look to improve performance while keeping costs under control.
Broadcom benefits from this trend by designing custom AI chips for large customers. It also supplies high-speed networking used inside AI data centers to move data quickly and efficiently. Bank of America believes this mix puts Broadcom in a strong spot as AI spending shifts from early hype to steady revenue growth.
J.P. Morgan Sees AVGO at the Center of Data Center Growth
J.P. Morgan is also positive on Broadcom heading into 2026. Top J.P. Morgan analyst Harlan Sur sees the stock as a top chip name to watch as data center spending continues to rise.
The bank expects data center capital spending to grow sharply next year, building on strong gains in 2025. Within this trend, Broadcom stands out for its role in both AI chips and networking. J.P. Morgan estimates Broadcom could generate $55 billion to $60 billion in AI-related revenue in fiscal 2026, showing how important the company has become to the AI supply chain.
Jefferies Names It a Top Pick for 2026
Jefferies is more bullish on Broadcom heading into 2026, saying AI spending still has room to grow. Analyst Blayne Curtis sees demand moving beyond GPUs into custom chips and networking, areas where Broadcom is already well positioned.
The bank sees demand for Broadcom’s custom chips still in the early stages, with Google (GOOGL) as a key driver as its AI capacity needs keep rising. Jefferies also expects more upside as other large customers, including Meta Platforms (META) and OpenAI, begin rolling out their own AI chips.
The firm also highlighted networking as another growth area, pointing to Broadcom’s next-generation Tomahawk 6 Ethernet switch as a potential driver.
Is Broadcom a Good Stock to Buy?
Broadcom stock holds a “Strong Buy” consensus rating from Wall Street analysts. This strong endorsement is based on the ratings of 29 analysts in the last three months, with 27 recommending a Buy, two recommending a Hold, and none recommending a Sell. The average 12-month price target for Broadcom is set at $461.93, which represents a 41.69% upside from the last closing price.
