This article first appeared on GuruFocus.
Broadcom Inc. (NASDAQ:AVGO) shares edged up about 1% Tuesday morning after top Wall Street firms raised price targets, citing stronger demand for the company’s custom AI chips.
Morgan Stanley lifted its target to $443 from $409 and kept an Overweight rating, while UBS raised its target to $472 from $415 and reaffirmed a Buy.
Bank of America bumped its target to $460 from $400 and maintained a Buy stance.
Analysts pointed to rising traction for Google’s (NASDAQ:GOOGL) tensor processing units and Broadcom’s ASIC pipeline as key drivers, saying AI-related orders could underpin revenue growth. They also flagged risks including customer concentration and competition from other chipmakers. Investing.com
Despite the bullish revisions, investors pared positions early Tuesday amid broader market caution and elevated valuation concerns. Analysts also noted near-term execution and supply-chain timing as potential constraints.
The recent upgrades add momentum for AVGO but still leave questions about how quickly higher analyst targets will translate into sales. Broadcom did not immediately respond to a request for comment.
