Broadcom (AVGO) Seen Well Positioned as AI Spending Concerns Ease

Broadcom Inc. (NASDAQ:AVGO) is 1 of the 10 AI Stocks to Keep connected Your Radar. On February 5, Jefferies expert Blayne Curtis reiterated a Buy standing connected the banal with a $500.00 terms target. The steadfast has reiterated AVGO arsenic its Top Pick, feeling assured that its fundamentals volition thrust outperformance.

Jefferies highlighted 2 overhangs for Broadcom, including the sustainability of AI walk and COT distribution. However, Google’s superior expenditure guidance has been a “significant ballot of confidence” for expanding AI spending, and truthful is the superior raising advancement from different players including OpenAI, xAI, and Oracle.

Addressing concerns astir Broadcom’s customized on-package (COT) business, Jefferies noted that AVGO is good up of MediaTek connected v8 chips and volition beryllium “even further ahead” with v9 chips successful some timing and capabilities.

AVGO and MTK are moving connected 2 antithetic SKUs (AVGO v8ax and MTK v8x) and we judge most, if not all, of the request volition beryllium for the higher show AVGO chip, akin to what happened with v6e vs v7x.

The firm’s bottom-up exemplary projects 6 cardinal full units for Google successful calendar 2027, with 85-90% of that concern going to Broadcom. It besides sees country for that wide fig to determination up further.

Meanwhile, networking besides continues to accelerate, apt adjacent outpacing ASICs successful the 4th supported by the TH6 ramp, DSP stock gains, and China strength.

We reiterate AVGO arsenic our Top Pick and expect the results volition talk for themselves.

Broadcom is simply a exertion institution uniquely positioned for the AI revolution, acknowledgment to its customized spot offerings and networking assets.

While we admit the imaginable of AVGO arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you’re looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.

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Disclosure: None. This nonfiction is primitively published at Insider Monkey.