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Jan. 25, 2026, 5:19 a.m.
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Broadcom Inc. Stock Outlook: Citi and Wells Fargo Raise Price Targets on AI Growth

Brief news summary

Broadcom Inc. (NASDAQ: AVGO) is viewed as a strong long-term investment, driven by growing AI-related sales. Citi reaffirmed a Buy rating with a $480 price target, showing confidence in Broadcom’s ability to capitalize on AI demand. Wells Fargo upgraded the stock to Overweight from Equal Weight, raising its price target to $430, highlighting optimism around growth in Google TPUs, custom XPU developments, and networking capabilities, while minimizing margin concerns. RBC Capital began coverage with a Sector Perform rating and $370 target, recognizing near-term benefits from Google TPUs but cautioning about growth sustainability tied to Anthropic and uncertainties related to OpenAI. Broadcom operates globally through two main segments: Semiconductor Solutions and Infrastructure Software. While promising, some analysts suggest other AI stocks may offer higher upside with lower risk. Investors seeking undervalued AI plays influenced by tariffs and onshoring trends might also explore alternative options.

Broadcom Inc. (NASDAQ:AVGO) stands out as one of the top future stocks to consider for long-term investment. On January 15, Citi maintained a Buy rating on Broadcom with a price target of $480. This rating and target followed a transfer of coverage and were primarily influenced by the company’s accelerating AI sales, reflecting increased confidence in Broadcom’s ability to leverage AI demand. On the same day, Wells Fargo upgraded Broadcom from Equal Weight to Overweight, raising its price target from $410 to $430. The firm believes concerns about gross margins are overstated. Wells Fargo also expects upside from Google’s TPU, significant growth in additional custom XPUs, and ongoing momentum in both scale-out and scale-up networking. Additionally, on January 14, RBC Capital analyst Srini Pajjuri initiated coverage of Broadcom Inc.

with a Sector Perform rating and a $370 price target. Pajjuri acknowledged strong near-term momentum in Google’s TPUs but expressed concerns about the long-term sustainability of Anthropic's ramp-up. Moreover, the timing and scale of opportunities with OpenAI remain uncertain. Broadcom Inc. (NASDAQ:AVGO) designs, develops, and supplies a range of semiconductor devices and infrastructure software solutions worldwide. The company operates through two main segments: Semiconductor Solutions and Infrastructure Software. While recognizing AVGO’s investment potential, we believe some AI stocks present greater upside and lower downside risk. For those seeking a highly undervalued AI stock poised to benefit from Trump-era tariffs and the onshoring trend, check out our free report highlighting the best short-term AI stock. READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.


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