Key Stats for Broadcom Stock
- 1- Year Price Change for Broadcom stock: 50.4%
- $AVGO Share Price as of Jan. 15: $344
- 52-Week High: $414
- $AVGO Share Price Target: $456
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What Happened?
Broadcom (AVGO) stock jumped 2.6% on Thursday after Wells Fargo upgraded the chipmaker to “Overweight” from “Equal-weight”, raising its price target to $430 from $410.
The upgrade comes at a critical time, as AVGO stock had fallen more than 17% from its recent highs following concerns about AI spending and China’s recent ban on VMware cybersecurity software.
Wells Fargo says concerns about Broadcom’s gross margins are “overdone.” The firm now sees major growth drivers that could push the stock higher, including Broadcom’s partnership with Google on TPU chips and massive AI infrastructure orders.
- Wells Fargo raised its 2026 revenue forecast for AVGO stock to $100.3 billion, up from its previous estimate of $97 billion.
- That’s a 116% year-over-year growth in AI semiconductor revenue alone.
- For 2027, Wells Fargo now expects revenue to hit $143.8 billion, with AI chip revenue growing another 78%.
These upgrades reflect Broadcom’s strong position in custom AI chips and networking equipment, both critical for building AI data centers.
The company recently secured a $73 billion backlog in AI-related orders to be shipped over the next 18 months.
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What the Market Is Telling Us About AVGO Stock
The market’s response to the upgrade shows investors are ready to look past near-term headwinds. While the China VMware ban created some uncertainty earlier this week, AVGO stock has proven resilient.
Wells Fargo’s call highlights several catalysts that make AVGO stock attractive at current levels.
- First, Google’s TPU chips (designed by Broadcom) are gaining traction with major tech companies, including Apple.
- Second, Broadcom is securing massive orders for custom AI accelerators from multiple hyperscale customers.
- The average AVGO stock price target sits at $456, implying 33% upside from current levels.
With AI infrastructure spending accelerating and Broadcom’s networking business growing rapidly, the recent pullback may offer a compelling entry point for long-term investors.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
