Wells Fargo Turns Bullish on Broadcom Inc. (AVGO), Citing Stronger 2026 Catalysts

Group 1 - Broadcom Inc. (NASDAQ:AVGO) is projected to have strong earnings growth over the next five years, with Wells Fargo upgrading its rating to Overweight and raising the price target to $430, indicating a potential upside of approximately 24% [1] - Wells Fargo has increased its revenue and EPS estimates for Broadcom, projecting revenues of $100.3 billion and EPS of $10.80 for CY26, and $143.8 billion and EPS of $15.35 for CY27, up from previous estimates [2] - The company is expected to see significant growth in its AI semiconductor revenue, projected to reach $52.6 billion in 2026 (up 116% YoY) and $93.4 billion in 2027 (up 78% YoY) [3] Group 2 - Wells Fargo anticipates low double-digit YoY growth for Broadcom's Infrastructure Software segment in FY26, with a backlog of nearly $73 billion at the end of FY25 [4] - Citi has reaffirmed a 'Buy' rating on Broadcom with a price target of $480, citing the company's increasing AI sales as a key factor [4] - Broadcom, founded in 1961, operates in the semiconductor and infrastructure software sectors globally [5]