Analysts Are Betting on Broadcom Stock for 2026. Should You Load Up on Shares Now?

Company Overview - Broadcom (AVGO) has a market capitalization of $1.84 trillion and has seen a stock return of approximately 120% since December, with a remarkable increase of over 2,500% over the past decade [1] AI Market Opportunity - Broadcom is gaining traction in the rapidly expanding AI market, supplying essential networking gear and custom processors for AI infrastructure [4] - The company has secured significant orders, including a deal with OpenAI for up to 10 gigawatts of AI racks, highlighting its central role in the AI sector [4] Analyst Insights - Susquehanna analyst Christopher Rolland raised the price target for AVGO stock to $450 from $400, maintaining a "positive" rating due to the strong performance of Google's TPUv7 chip and its appeal to major customers like Anthropic and Meta [2] - Anthropic has committed to potentially ordering 1 million TPUs, indicating strong demand for AI processing units [3] Revenue Projections - Broadcom's CEO Hock Tan revealed ambitious targets for AI revenue, aiming for over $120 billion by 2030, compared to $20 billion projected for fiscal 2025, suggesting a sixfold growth in the AI business over the next five years [5] - The company is focusing on a small, lucrative customer base, targeting around seven customers involved in building large language models [6] Market Investment - Companies in the AI sector are collectively investing around $30 billion annually in AI compute infrastructure, which Broadcom identifies as its primary opportunity rather than targeting numerous smaller enterprise customers [7]