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

Broadcom Inc. (NASDAQ:AVGO) is one of the 10 AI Stocks to Keep on Your RadarOn February 5, Jefferies analyst Blayne Curtis reiterated a Buy rating on the stock with a $500.00 price target. The firm has reiterated AVGO as its Top Pick, feeling confident that its fundamentals will drive outperformance.

Jefferies highlighted two overhangs for Broadcom, including the sustainability of AI spend and COT distribution. However, Google’s capital expenditure guidance has been a “significant vote of confidence” for increasing AI spending, and so is the capital raising progress from other players including OpenAI, xAI, and Oracle.

Addressing concerns about Broadcom’s custom on-package (COT) business, Jefferies noted that AVGO is well ahead of MediaTek on v8 chips and will be “even further ahead” with v9 chips in both timing and capabilities.

AVGO and MTK are working on two different SKUs (AVGO v8ax and MTK v8x) and we believe most, if not all, of the demand will be for the higher performance AVGO chip, similar to what happened with v6e vs v7x.

The firm’s bottom-up model projects 6 million total units for Google in calendar 2027, with 85-90% of that business going to Broadcom. It also sees room for that overall number to move up further.

Meanwhile, networking also continues to accelerate, likely even outpacing ASICs in the quarter supported by the TH6 ramp, DSP share gains, and China strength.

We reiterate AVGO as our Top Pick and expect the results will speak for themselves.

Broadcom is a technology company uniquely positioned for the AI revolution, thanks to its custom chip offerings and networking assets.

While we acknowledge the potential of AVGO to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than AVGO and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

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