Citi Bullish on Broadcom (AVGO) as Accelerating AI Sales Drive $480 PT

Broadcom Inc. (NASDAQ:AVGO) is one of the best future stocks to buy for the long term. On January 15, Citi kept a Buy rating on Broadcom with a $480 price target. Following a transfer of coverage, the firm established this new price target and issued a Buy rating, primarily driven by the company’s accelerating AI sales. The firm’s shift reflects increased confidence in the company’s ability to capitalize on AI demand.

On the same day, Wells Fargo upgraded Broadcom to Overweight from Equal Weight, while raising the price target to $430 from $410. The firm stated that concerns regarding gross margins are overdone. Additionally, Wells Fargo anticipates Google TPU upside, significant ramps for additional custom XPUs, and continued momentum in scale-out and scale-up networking.

Furthermore, on January 14, RBC Capital analyst Srini Pajjuri initiated coverage of Broadcom Inc. (NASDAQ:AVGO) with a Sector Perform rating and a price target of $370. Pajjuri noted that while Google’s TPUs show significant near-term momentum, there are concerns regarding the long-term sustainability of the Anthropic ramp-up. Furthermore, the potential timing and scale of opportunities with OpenAI remain uncertain.

Broadcom Inc. (NASDAQ:AVGO) designs, develops, and supplies various semiconductor devices and infrastructure software solutions internationally. 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.