Mizuho Raises Broadcom (AVGO) PT to $320 Amid Resumed China AI Chip Shipments

Broadcom Inc. (NASDAQ:AVGO) is one of the best performing semiconductor stocks to buy now. On July 15, Mizuho increased its price target for Broadcom to $320 from $315, while maintaining an Outperform rating. The adjustment showed updated semiconductor estimates following the Trump administration’s decision to allow Nvidia Corp. (NASDAQ:NVDA) and other AI accelerator providers to resume AI graphics processing unit shipments to China.

This policy change is seen as a positive for US companies re-entering China’s $50 billion market. In Q2 2025, Broadcom reported a record total revenue of $15 billion, which was a 20% increase year-over-year. Semiconductor revenue in particular was $8.4 billion, which increased by 17% year-over-year, with AI semiconductor revenue specifically exceeding $4.4 billion, a 46% increase.

Infrastructure software revenue also grew by 25% to $6.6 billion, largely attributed to the successful integration of VMware and robust VCF sales. However, non-AI semiconductor revenue saw a 5% year-over-year decline, with specific downturns in the industrial and wireless sectors. Broadcom anticipates a sequential decline in consolidated gross margin by ~1.3% in Q3 due to a higher mix of XPUs.

Broadcom Inc. (NASDAQ:AVGO) designs, develops, and supplies various semiconductor devices and infrastructure software solutions worldwide.

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.