Morgan Staneley Expects Strong Ramp In Broadcom (AVGO)’s Networking And ASICs Segments; Raises PT To $485

Photo by Christian Wiediger connected Unsplash

Broadcom Inc. (NASDAQ:AVGO) heads into its quarterly study with analysts expecting the company’s AI-driven maturation to stay firmly intact.

On June 1, 2026, Morgan Stanley expert Joseph Moore raised the firm’s terms people connected the banal to $485 from $470 and maintained an “Overweight” standing up of results scheduled aft the marketplace adjacent connected June 3, 2026. The steadfast expects Broadcom Inc. (NASDAQ:AVGO) to conscionable elevated capitalist expectations, supported by a beardown ramp successful some networking and application-specific integrated circuits (ASICs). Moore besides said Broadcom is apt to clasp a beardown bulk of the Tensor Processing Unit (TPU) business.

That presumption follows a beardown fiscal first-quarter study released connected March 4, 2026.

Broadcom Inc. (NASDAQ:AVGO) reported grounds gross of $19.3 billion, up 29% year-over-year, portion AI semiconductor gross climbed 106% to $8.4 billion, driven by request for customized AI accelerators and AI networking. Adjusted EBITDA reached a grounds $13.1 billion, representing 68% of revenue.

Management guided for fiscal second-quarter gross of astir $22.0 billion, implying 47% year-over-year growth, with adjusted EBITDA expected to stay astir 68% of revenue. Semiconductor gross is projected to scope $14.8 billion, including AI semiconductor gross of astir $10.7 billion, up astir 140% from a twelvemonth earlier. Infrastructure bundle gross is expected to scope astir $7.2 billion.

Broadcom Inc. (NASDAQ:AVGO)’s absorption besides said it has secured cardinal constituent capableness done 2028 and stated it has a enactment of show to AI spot gross exceeding $100 cardinal successful 2027, reflecting the standard of request from hyperscale customers and customized AI silicon programs.

Broadcom Inc. (NASDAQ:AVGO) is simply a exertion institution that specializes successful semiconductor devices (through the Semiconductor Solutions segment) and infrastructure bundle solutions (through the Infrastructure Software segment).

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: 33 Stocks That Should Double successful 3 Years and 15 Stocks That Will Make You Rich successful 10 Years. Disclosure: None. Follow Insider Monkey connected Google News.