Truist Increases Broadcom (AVGO) PT, Maintains Buy Rating

Broadcom Inc. (NASDAQ:AVGO) is one of the 10 tech stocks on Wall Street’s radar right now. On June 6, Truist analyst William Stein increased his price target on Broadcom Inc. (NASDAQ:AVGO) to $295 from $267 and maintained a Buy rating after the company posted solid results for FQ2 2025.

The firm noted that the stock dipped due to limited immediate AI upside, compared to investor expectations. However, Stein believes that Broadcom’s (NASDAQ:AVGO) long-term AI outlook remains strong and expects new customer gains to be a prospect for future growth.

The company reported strong Q2 results, with adjusted earnings per share of $1.58 and revenue of $15 billion, which was a 20% year-over-year growth. The company posted $10 billion in adjusted EBITDA, which represented 67% of revenue, and generated $6.4 billion in free cash flow. For the third quarter, the company projects revenue around $15.8 billion and expects adjusted EBITDA to reach at least 66% of that total.

Broadcom (NASDAQ:AVGO) has transitioned from a traditional semiconductor company into a core provider of AI infrastructure. Despite a pullback after earnings, AI revenue surged 46% year-over-year to $4.4 billion, supported by strong networking demand, while non-AI semiconductor and infrastructure software segments were weaker. However, strong momentum is projected into Q3.

Broadcom (NASDAQ:AVGO) develops and supplies advanced semiconductor devices and software solutions used across a wide range of technologies, including AI networking, wireless connectivity, storage systems, and industrial automation. The company’s products support important functions in consumer electronics, data centers, and communication 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.

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