Broadcom Inc. (AVGO) Draws Mixed Analyst Views as AI ASIC Momentum Faces Hyperscaler Risks

Broadcom Inc. (NASDAQ:AVGO) is one the Top 10 AI Stocks in Focus on Wall Street. Despite optimism around the company’s AI exposure, recent analyst commentary on Broadcom reflects a divergence in views. Goldman Sachs, for instance, has reiterated Broadcom as “Buy” in recent coverage, stating that it’s bullish ahead of Broadcom earnings.

Expect a solid quarter, with continued AI momentum.

Broadcom Inc. will announce its first quarter fiscal year 2026 results on Wednesday, March 4, 2026.

Meanwhile, Robert W. Baird has also reiterated its positive view, maintaining a Buy rating on the stock with a $420.00 price target. The firm is bullish on AVGO, particularly due to its AI momentum and earnings potential.

According to Baird, accelerating demand for Broadcom’s v7 custom ASICs powering Google’s TPU infrastructure, is leading to a sharp increase in expected AI-related revenue. In contrast, on February 12, DA Davidson initiated coverage of four major semiconductor names, namely: AMD, Intel, Broadcom and Taiwan Semiconductor Manufacturing Co.

Photo by JESHOOTS.COM on Unsplash

For Broadcom, the firm initiated coverage with a Neutral recommendation and a $335 PT, noting that the company is “sitting on a shrinking iceberg” as hyperscalers increasingly shift toward customized accelerators.

DA Davidson believes that some of Broadcom’s largest customers may internalize more of their silicon stack, a shift that may pressure supplier economics overtime. It further noted how AVGO’s AI ASIC opportunity is not sufficient to warrant a premium valuation compared to market leaders such as Nvidia.

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

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.