Wells Fargo Upgrades Broadcom (AVGO), Bernstein Keeps Outperform Rating

Broadcom Inc. (NASDAQ:AVGO) is one of the 12 Best 5G Stocks to Invest in According to Hedge Funds. On January 15, Wells Fargo increased its price target on Broadcom Inc. (NASDAQ:AVGO) from $410 to $430 and upgraded its rating from Equal-Weight to Overweight.

Wells Fargo noted that the recent weakness in the share price has created a better entry point for investors. The firm also pointed to growing confidence in new growth drivers that could support Broadcom Inc. (NASDAQ:AVGO) through 2026. Wells Fargo raised its estimates for the company for calendar years 2026 and 2027 based on stronger expectations for the AI semiconductor revenue.

Earlier, on January 9, Bernstein reaffirmed its Outperform rating on Broadcom Inc. (NASDAQ:AVGO) with a price target of $475 after meeting with the company’s leadership. The discussion focused on investor concerns about growing competition in the AI space.

Following the meeting, Bernstein had “more conviction than ever” that the worries about competition are “hugely overblown” and that Broadcom Inc. (NASDAQ:AVGO) is not expected to lose its leadership position in the ASIC (Application-Specific Integrated Circuit) space anytime soon.

Bernstein also pointed to the company’s innovations in areas such as 3D chip stacking, 400G SerDes, investments in substrate manufacturing, and new manufacturing techniques that could eliminate the need for interposers. The firm sees these as advantages that “no competitors or customers can match.”

Broadcom Inc. (NASDAQ:AVGO) is an American multinational technology company that designs, develops, and supplies a wide range of semiconductor, enterprise software, and security solutions. The company’s solutions include critical components for 5G infrastructure.

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.

READ NEXT: 12 Best American Energy Stocks to Buy Now and 10 Best NYSE Stocks to Buy According to Analysts.

Disclosure: None. This article is originally published at Insider Monkey.