Mizuho Turns Bullish on Broadcom (AVGO) as AI Opportunities Expand in China

Broadcom Inc. (NASDAQ:AVGO) is one of the AI Stocks Investors Are Watching Closely. On July 15, Mizuho analyst Vijay Rakesh raised the price target on the stock to $329.00 (from $315.00) while maintaining an “Outperform” rating. The affirmation follows the Trump administration announcing that Nvidia and other AI accelerator providers can begin shipping AI GPUs to China.

“Last night, as part of its trade negotiations with China, the Trump administration announced that NVDA, and other AI Accelerator providers, would be allowed to resume AI GPU shipments into China. Key takeaways include: 1) BIG win for NVDA, as it previously noted it expected a $8B top-line hit in JulQ from shipment restrictions, as well as additional tailwinds from an expected Blackwell project designed to meet the US’s requirements on shipments into China later this year, 2) AVGO ASIC for ByteDance potentially back on the table, driving potential for upside from current estimates, 3) AMD to resume MI308 shipments to China, and 4) NVDA seeing early benefits as key customers ByteDance and Tencent already applying for H20 shipment licenses. Raising ests/PTs for NVDA/AMD/AVGO to $192/$175/$320 with China’s return providing a tailwind as US companies re-enter a ~$50B market.

Broadcom is a technology company uniquely positioned in the AI revolution owing to its custom chip offerings and networking assets.

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.