Broadcom (AVGO) Stock: Oppenheimer Boosts Price Target on AI Tailwinds

Broadcom Inc. (NASDAQ:AVGO) is one of the AI Stocks Gaining Attention on Wall StreetOn July 15, Oppenheimer reiterated Broadcom as “Outperform” and raised the firm’s price target to $305 from $265.

The firm affirmed the rating after increasing targets in the semiconductor group as part of a Q2 preview. According to Oppenheimer, most companies that are exposed to artificial intelligence are in for a “beat and raise” setup.

The firm is long-term bullish on the entire sector based on the powerful role of semis in AI and the broader technology value chain.

“Our top picks are NVDA , AVGO, MRVL, and MPWR.”

Broadcom (AVGO) Stock: Oppenheimer Boosts Price Target on AI Tailwinds

A semiconductor production line, showing the complex procedures of chip manufacture.

Particularly for Broadcom, Oppenheimer noted three factors supporting the bullish thesis: the company’s expanding earnings power over time, sticky and stable industrial and infrastructure exposure, and defensible technology. Broadcom deserves to trade at a multiple closer to in line with its peer group, the firm believes.

Broadcom is a technology company uniquely positioned in the AI revolution owing to its custom chip offerings and networking assets.

While we acknowledge the risk and potential of AVGO as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AVGO and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.