UBS Lifts Broadcom (AVGO) PT to $472, Keeps Buy Rating on Profitable Tech Stock

Broadcom Inc. (NASDAQ:AVGO) is one of the most profitable tech stocks to buy. On December 1, UBS raised the firm’s price target on Broadcom to $472 from $415, while keeping a Buy rating on the shares.

On the same day, Bank of America analyst Vivek Arya raised the firm’s price target on Broadcom to $460 from $400 with a Buy rating on the shares. BofA sees the rising leverage of TPUs as a positive for Broadcom. Arya estimates that the number of TPU units will likely expand from the current 2 million units in 2025 to over 3 million units in 2026.

Earlier in its Q3 2025 earnings report, Broadcom disclosed that the company achieved a record total revenue of $16 billion, which marked a substantial 22% year-on-year growth, primarily driven by strong performance in AI semiconductors and the integration of VMware. The Semiconductor revenue segment grew 26% to $9.2 billion. Within this, AI Semiconductor revenue surged to $5.2 billion, representing a 63% increase and marking 10 consecutive quarters of robust growth.

This momentum is set to continue, as the company secured over $10 billion in orders for AI rigs based on their XPUs. CEO Hock Tan noted that the increased confidence for 2026 is due to both increasing volumes from existing customers and the crucial addition of a fourth customer with immediate and substantial demand, which will ship strongly in 2026. The company is selective, currently focused on a total of seven prospects, four of which are now customers.

Broadcom Inc. (NASDAQ:AVGO) designs, develops, and supplies various semiconductor devices and infrastructure software solutions worldwide. 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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Disclosure: None. This article is originally published at Insider Monkey.