Broadcom (AVGO) Gets $420 Price Target as AI Tailwinds Support Multi-Year Growth

Raymond James believes determination is upside for respective semiconductor stocks, including Nvidia (NVDA), AMD (AMD), and more.

“The AI secular taxable has taken the wheel, and the strategy of trading the rhythm successful semis has moved to the backmost seat. Each of these companies is awesome successful its ain way. We are AI bulls yet admit the affluent valuations and risk, but these are high-quality compounders with semipermanent maturation rates supra their outgo of capital. We are successful the midst of an unprecedented structural displacement successful the exertion landscape, and semiconductors are foundational elements.”

Particularly for Broadcom, the steadfast believes AI stock gains, borderline strength, and underappreciated bundle currency flows volition enactment semipermanent upside.

“We resume sum of Broadcom Inc. (AVGO) with an Outperform rating. The institution is simply a stock gainer successful the AI complex, providing operators customized alternatives to general-purpose processors.”

Broadcom is seen gaining stock successful the AI satellite since hyperscalers whitethorn privation customized alternatives to wide intent processors.

Even though non-AI semis and bundle are restricting wide growth, it expects betterment from the non-AI semis and believes that borderline and currency procreation from bundle is not afloat appreciated.

“Broadcom’s spot successful chiplet and systems solutions, coupled with beardown networking IP (processing, PHY/Serdes, Optics, CPO) and dependable march of precocious packaging/CPO, is simply a competitory moat to support shareholder profitability and marketplace stock successful a rapidly evolving world. Our $420 terms people is based connected 30x our FY27E EPS.”

Broadcom is simply a exertion institution uniquely positioned successful the AI gyration owing to its customized spot offerings and networking assets.

While we admit the imaginable of AVGO arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you're looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock. READ NEXT: 10 AI Stocks successful Focus connected Wall Street and 10 Hot AI Stocks to Keep connected Your Radar Disclosure: None.