Broadcom's (AVGO) AI Momentum Extends Through 2028, UBS Says

Broadcom (NASDAQ:AVGO) is one of the 10 Trending AI Stocks According to Analysts. Another AI winner, Broadcom has received fresh Wall Street support after analysts pointed to accelerating TPU demand, sharp AI revenue ramp, and robust custom ASIC visibility through 2028. On February 10, UBS analyst Timothy Arcuri reiterated a Buy rating on the stock with a $475.00 price target.

With LLM developers pushing their custom ASIC roadmaps more aggressively, it is driving rising demand for TPUs as an alternative to GPUs. The firm has projected that Broadcom will ship more than 5 million TPU units in calendar 2027, up from an estimated 3.7 million units expected in 2026.

Of these, more than half of 2027 shipments will be v7 (Ironwood) models before v8ax (Sunfish) becomes the majority of shipments in 2028. Both of these products will be based on TSMC’s N3 process.

Broadcom’s AI revenue is now forecast to reach an estimated $60 billion for fiscal 2026, a 200% year-over-year growth. This will further increase to approximately $106 billion in fiscal 2027 (up 80% year-over-year) and approximately $150 billion in fiscal 2028.

For custom compute revenue, Google will account for about $30 billion of revenue this year, growing to an estimated $56 billion in calendar 2027. Anthropic’s racks will represent most of the remaining TPU revenue alongside a smaller portion to Meta.

“We expect AVGO to start shipping OpenAI’s ASIC late this year and Anthropic’s ASIC in 2H:27. On the back of this, our EPS for C2026/2027/2028E is now ~$12.70/~$18/~$22.50 and our PT remains $475 and we remain Buy.”

Broadcom is a technology company uniquely positioned for the AI revolution, thanks 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.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

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