Broadcom (AVGO) Price Target Raised as Google TPU Demand Surges

Broadcom Inc. (NASDAQ:AVGO) is one of the AI Stocks in Focus This Week. On December 1, BofA analyst Vivek Arya raised the firm’s price target on the stock to $460 from $400 and kept a “Buy” rating on the shares. The firm is optimistic on the stock driven by the company’s expanding presence in Google’s TPU (Tensor Processing Unit) ecosystem.

Discussing the successful launch of Gemini 3 trained 100% on the TPU as well as the potential external rental of TPUs through Google Cloud, analysts view rising TPU leverage as a positive for key design partner Broadcom.

Analysts led by Vivek Arya noted that Broadcom’s current average selling prices (ASPs) of about $5,000–6,000 and roughly 2 million expected units in 2025 could climb significantly as the next generation ramps.

These figures may increase to around $12,000–15,000 per unit and more than 3 million units in 2026, with upside to 3.6-3.8 million “if demand continues to expand.”

The firm has modestly trimmed gross margin expectations based on a higher compute and ASIC mix but overall earnings are largely unchanged.

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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