Broadcom Inc. (NASDAQ:AVGO) is included among the 14 Best US Stocks to Buy for Long Term.
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On December 4, Susquehanna analyst Christopher Rolland raised the firm’s price target on Broadcom Inc. (NASDAQ:AVGO) to $450 from $400 and maintained a Positive rating on the shares. The update came ahead of the company’s earnings, which are expected on December 11. According to the firm, the new Google TPUv7 (GOOG) and growing AI networking demand should drive growth in Q3 and Q4. Looking ahead, a wider ASIC customer base is expected to fuel stronger performance in the second half of 2026.
Broadcom Inc. (NASDAQ:AVGO)’s key significant growth opportunity now lies in its ASIC business. These custom-made chips, which are designed to handle specific tasks, are more efficient in running those tasks than general chips like GPUs. Since AI systems in this process take up a lot of power, a lot of companies are recruiting Broadcom to design custom AI chips with reduced costs.
Broadcom Inc. (NASDAQ:AVGO) came into focus by designing Alphabet’s tensor processing units (TPUs), which resulted in other companies considering its ASIC solutions. The company has been working with OpenAI on custom AI chips and plans to supply OpenAI with these chips in the second half of next year and finally complete the order by the end of 2029. That would translate to $100 billion worth of chips a year.
Broadcom Inc. (NASDAQ:AVGO) is an American multinational semiconductor company that also specializes in infrastructure software products.
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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