Analysts Call Broadcom a Top AI Stock to Watch

While Nvidia tends to dominate AI headlines, Broadcom has quietly built a powerful position behind the scenes. Its custom AI chips, networking solutions, and infrastructure software power some of the largest data centers in the world – from Google and Meta to OpenAI.

Over the years, Broadcom has transformed from a chip supplier into a full-stack infrastructure player through a string of major acquisitions, including VMware and Symantec’s enterprise business. That mix of hardware and software now gives Broadcom a strong advantage as AI computing demand skyrockets.

Numbers that caught Wall Street’s attention

Broadcom’s latest quarterly results tell the story. Revenue hit $15.95 billion, up 22% year-over-year. Its semiconductor business grew 26%, and software revenue climbed 17%, fueled by the VMware integration. Free cash flow reached a record $7 billion, and the company returned nearly $3 billion to shareholders through dividends.

Year-to-date, Broadcom stock is up roughly 55%, nearly doubling over the past twelve months, far outperforming the S&P 500’s 14% gain. That kind of momentum isn’t going unnoticed.

Analysts are turning bullish

Jefferies analysts led by Blayne Curtis recently raised Broadcom’s price target from $415 to $480, calling the company their “Franchise Pick” with “outsized upside.” The optimism centers on Broadcom’s custom AI accelerator business, which is gaining traction with hyperscalers.

Google’s next-gen TPU chips, Meta’s in-house AI designs, and OpenAI’s expanding infrastructure could all translate into billions in new revenue for Broadcom. Jefferies now expects the company’s AI-related sales to hit $10 billion by 2027, and potentially $40–50 billion annually by 2028.

Why it matters

This offers a strong signal about where AI infrastructure spending is heading. The world’s biggest tech companies are racing to build faster, more efficient systems, and Broadcom is supplying key pieces of that puzzle.

The takeaway

Broadcom’s mix of strong fundamentals, growing AI exposure, and high-margin software gives it serious long-term potential. The company is already being recognized as one of the few tech leaders that can scale with the AI revolution – making it, in our opinion, a worthy endeavor for those seeking growth in the sector.