Mizuho Reaffirms 'Outperform' on Broadcom Inc. (AVGO), Citing AI Growth Outlook

Broadcom Inc. (NASDAQ:AVGO) is among the high growth mega cap stocks you can buy and hold for the next 3 years. Mizuho reaffirmed its ‘Outperform’ rating on Broadcom Inc. (NASDAQ:AVGO) while raising the price target to $410.00 from $355.00, implying a possible surge of nearly 14%. This optimism follows the company’s robust earnings report in which the management also raised the fiscal 2026 AI revenue outlook for the next few years, given the company’s AI portfolio and ScaleOut/Up opportunity.

Amid today’s AI boom, the company’s often-overlooked small components play a huge role in AI infrastructure. The 5-year return delivered by Broadcom Inc. (NASDAQ:AVGO) is nothing short of amazing, with a payoff 11 times greater. Some believe that the company doesn’t have any more room for growth, but for many, the growth has just started. All thanks to XPUs and the Broadcom ecosystem, the tech powerhouse’s moat is now unshakable.

But that’s not it. Broadcom Inc. (NASDAQ:AVGO) thrives on strategic partnerships, with one of particular importance being the deal with OpenAI, which positions the company for long-term growth in AI infrastructure. To say the least, the company is currently among the most compelling investments.

Broadcom Inc. (NASDAQ:AVGO), headquartered in Palo Alto, California, is a developer and supplier of several semiconductor devices and infrastructure software solutions. Founded in 1961, the company operates in two segments: Semiconductor Solutions and Infrastructure Software.

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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