Broadcom's (AVGO) AI and Compute Demand Remain Robust, Bernstein Reaffirms Bullish Outlook

Broadcom Inc. (NASDAQ:AVGO) is one of the AI Stocks on the Market’s Radar. On October 8, Bernstein SocGen Group analyst Stacy Rasgon reiterated an Outperform rating on the stock with a $400.00 price target.

According to the firm, Broadcom’s Q3 earnings were good. Semis and software both performed better than expected. Even though non-AI semis remain slow to recover, AI semis revenues were quite robust at $5.2B.

Moreover, insights from a virtual meeting with Broadcom’s CEO and CFO reveal that compute demand remains robust, while $90B 2030 target seems “easily achievable.”

“Takeaways from a (virtual) meeting with the CEO and CFO; Compute demand remains very strong, noting that hyperscalers/frontier LLM developers face exponentially growing need for compute and thus the recent deals between NVDA/AMD/OpenAI are not surprising. High confidence in achieving growth targets, with $90B 2030 target “easily” achievable just from AVGO’s currently four customers alone (and $120 plausible from them as well)."

"In the near term, Hock reiterated his confidence in the timing of $10B in OpenAI revenue in 3Q26 and noted that additional orders from them are highly likely. AVGO (OP, $400 PT): A strong 2025 AI trajectory seems set to accelerate into 2026, bolstered by software, cash deployment, and superb margins & FCF.”

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.