Why Analysts See Broadcom (AVGO) Riding a Strong AI Backlog Into 2026

Broadcom Inc. (NASDAQ:AVGO) is one of the AI Stocks Gaining Attention on Wall Street. On September 5, Baird analyst Tristan Gerra raised the price target on the stock to $300.00 (from $210.00) while maintaining an Outperform rating.

The firm noted how Broadcom’s “impressive” execution has resulted in a much larger order than anticipated from OpenAI for the second half of 2026. It also cited “incrementally positive data points” from channel checks regarding Google TPU volumes for Broadcom, which imply strength in multiple AI partnerships.

While the stock may look expensive, the valuation seems justified driven by accelerating AI revenue and a sizable backlog heading into 2026.

“Impressive execution catalyzes a much larger order than we expected from OpenAI in 2H26, while we have recently heard from the channel incrementally positive datapoints regarding Google TPU volumes for Broadcom."

"We see a strong ramp for Tomahawk 6 next year (more use cases, Mi455). Infrastructure software bookings remain strong with vSphere V9 enabling on-premise applications and running AI workloads. Valuation is rich but likely sustained driven by the expected acceleration in AI revenue in 2026 along with an impressive AI backlog. Outperform-rated.”

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.