12 Best Stocks to Buy and Hold for 2026

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​3. Broadcom Inc. (NASDAQ:AVGO)

EPS Growth 2026: 37.68%

Analyst Upside Potential: 40.88%

Number of Hedge Fund Holders: 183

​Broadcom Inc. (NASDAQ:AVGO) is one of the Best Stocks to Buy and Hold for 2026. The share price of Broadcom Inc. (NASDAQ:AVGO) has fallen more than 19% since the company released its fiscal Q4 2025 results on December 11. The falling investor sentiment comes despite the earnings beat. However, Wall Street remains bullish on the stock with analysts’ 12 month price target reflecting more than 40% upside.

​During the fiscal Q4 2025, Broadcom Inc. (NASDAQ:AVGO) grew its revenue by 28.18% year-over-year to $18.02 billion, surpassing estimates by $555.89 million. The EPS of $1.95 also topped consensus by $0.08. Management attributed the strong quarterly performance to AI growth from XPUs and networking. Notably, the company forecasts that its AI business will deliver more than 100% year-over-year growth to reach $8.2 billion in Q1 2026.

​A recent report by Forbes, published on December 18, noted that the falling investor sentiment despite the earnings beat, mainly stems from the disappointing gross margin outlook for Q1 2026. Management expects the margins to compress by around 100 basis points, driven by a shift towards lower-margin AI hardware.

​However, Wall Street maintains its bullish outlook on Broadcom Inc. (NASDAQ:AVGO). Recently, on December 17, Joseph Moore from Morgan Stanley reiterated a Buy rating on the stock with a $462 price target. Earlier on December 15, Timothy Arcuri from UBS also reiterated a Buy rating on the stock and also raised the price target from $472 to $475.

​Arcuri noted the recent share price pull-back as an overreaction based on his discussion with the company’s management. He added that the drop also indicates overly consensus-long positioning, thereby reflecting widespread bullish consensus. Arcuri highlighted that commentary on AI semiconductor revenue suggests high expectations for the next year, and he raised the price target to $475.

​Broadcom Inc. (NASDAQ:AVGO) designs, develops, and supplies various semiconductor devices and infrastructure software solutions worldwide. The company operates in two segments: Semiconductor Solutions and Infrastructure Software.

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