Broadcom (AVGO) Maintains Overweight Rating as AI Tailwinds Build

Broadcom Inc. (NASDAQ:AVGO) is one of the AI Stocks Investors Should Keep an Eye On. On July 30, Morgan Stanley reiterated the stock as “Overweight” and raised its price target to $338 per share from $270.

According to the firm, the rising enthusiasm for AI semis is “justified by long term strength in the business.” Based on this enthusiasm, it raised targets across the board among its AI-linked semiconductors coverage.

“We think that the increase in enthusiasm for AI semis is justified by long term strength in the business, and raise targets across the board — though some near term constraints remain. PTs higher across the board, stay OW NVDA AVGO ALAB.”

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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