Piper Sandler Raises PT on Broadcom (AVGO) to $315, Reiterates Overweight

Broadcom Inc. (NASDAQ:AVGO) is one of the Hot AI Stocks to Keep on Your Radar. On August 22, Piper Sandler analyst Harsh Kumar raised the price target on the stock to $315.00 (from $300.00) while maintaining an Overweight rating.

In an investor note, the firm highlighted that it is optimistic on Broadcom’s prospects into the October quarter around both the core semiconductor business and the infrastructure software segments. It strongly believes that Broadcom is well-positioned in the AI landscape, leading to the rating affirmation.

“In a nutshell, the semiconductor business is benefiting from strong growth in AI which in the current quarter is on track to grow 60% Y/Y to $5.1 billion. We suspect that the segment will overachieve the revenue objective of $5.1 billion revenue run rate providing upside in the quarter. For the July quarter non-AI sales, we anticipate business will be largely flattish for the July quarter. Overall, we see the AI piece as the lead driver of growth in the July quarter as the non-AI business remains flattish and at the cusp of a recovery with some segments improving but others flattish to down. We continue to view AVGO as well positioned in the AI landscape and reiterate our OW rating. PT to $315.”

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.

READ NEXT: 10 Must-Watch AI Stocks for Investors and 10 AI Stocks Analysts Are Tracking Closely

Disclosure: None.