Broadcom (AVGO) Target Jumped at Truist as AI Growth Story Stays Intact

Broadcom Inc. (NASDAQ:AVGO) is included among the 15 Best Blue-Chip Stocks with Growing Dividends.

Truist lifted its price target on Broadcom Inc. (NASDAQ:AVGO) to $500 from $365 and kept a Buy rating on the stock. The firm said the latest quarter came in as a “pretty low-drama” earnings beat with higher guidance. While there is some awareness around pressure on gross margins, Truist made it clear that earnings power is the bigger story right now. The stock, in its view, still offers “AI growth with duration.”

Broadcom’s fiscal fourth quarter, which ended November 2, easily cleared expectations. Revenue reached a record $18.01 billion, up 28% from a year earlier. Adjusted EPS climbed 37% to $1.95.That performance topped consensus forecasts by a comfortable margin. Wall Street had been looking for $17.46 billion in revenue and adjusted EPS of $1.87.

AI continues to be the main engine. Revenue tied to AI jumped 74% year over year, marking the 11th straight quarter of accelerating growth. On the earnings call, CEO Hock Tan said demand for Broadcom Inc. (NASDAQ:AVGO)’s AI accelerators, AI switches, and other data center products remains unprecedented.

Tan also shared an update on customer activity. After placing a $10 billion order last quarter, AI start-up Anthropic added another $11 billion order scheduled to be filled over the next year.

Broadcom Inc. (NASDAQ:AVGO) is an American company that designs and supplies semiconductors and infrastructure software, with products that sit at the core of modern data centers and enterprise systems worldwide.

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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