Mizuho Lifts PT on Broadcom (AVGO) Stock

Broadcom Inc. (NASDAQ:AVGO) is one of the 10 Best Semiconductor Stocks to Buy According to Reddit. Mizuho analyst Vijay Rakesh raised the price target on the company’s stock to $315 from $310, while keeping an “Outperform” rating. The firm increased estimates and price targets for several names in the broader semiconductors and semiconductor capital equipment group. The firm took a look at the data center and AI server market after the re-rating post the Liberation Day selloff. Overall, the firm expects Broadcom Inc. (NASDAQ:AVGO) to achieve industry-leading FY 2026 gross margins and operating margins, with potential FCF growth.

In Q2 2025, Broadcom Inc. (NASDAQ:AVGO) achieved record revenue due to continued momentum in AI semiconductor solutions and VMware. Its Q2 2025 AI revenue saw an increase of 46% YoY to more than $4.4 billion, thanks to the strong demand for AI networking. Broadcom Inc. (NASDAQ:AVGO) expects growth in AI semiconductor revenue to accelerate to $5.1 billion in Q3 2025, delivering 10 consecutive quarters of growth, with the company’s hyperscale partners continuing to invest. In Q2 2025, the company saw a record FCF of $6.4 billion, up 44% YoY.

ClearBridge Investments, an investment management company, released its Q2 2025 investor letter. Here is what the fund said:

“Adding Broadcom Inc. (NASDAQ:AVGO), a leader in semiconductor design for communications and networking devices, enables the Strategy to better participate in the development of custom silicon chips for AI computing. Broadcom is well-positioned for continued healthy investment in AI, working with several large technology companies to develop custom silicon that we expect to grow alongside robust demand for Nvidia’s all-purpose GPUs. The company’s cloud infrastructure software business should also continue to grow for the next several years given its entrenched position within enterprises.”

While we acknowledge the potential of AVGO as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.