Citi Reiterates Buy on Broadcom (AVGO) Amid AI, Wireless Market Optimism

Broadcom Inc. (NASDAQ:AVGO) is one of the most profitable tech stocks to invest in now. On August 26, Citi’s Christopher Danely reiterated a Buy rating on Broadcom Inc. (NASDAQ:AVGO) with a $315 price target, citing the company’s momentum in artificial intelligence. He expects Q3 FY 2025 earnings to exceed consensus, driven by strong demand for AI-related services from major customers, including Google and Meta. AI sales are projected to represent nearly 30% of Broadcom’s fiscal 2025 revenue.

Citi Reiterates Buy on Broadcom (AVGO) Amid AI, Wireless Market Optimism

Danely acknowledged concerns about potential margin pressure from AI, but noted that recovery in Broadcom Inc.’s (NASDAQ:AVGO) non-AI semiconductor business could offset those risks. Reflecting this view, he has raised revenue and earnings forecasts for the coming years. Broadcom’s expansion into wireless and other markets is also seen as providing additional growth avenues.

Earlier in July, Danely had already increased his price target to $315 from $285 in a Q2 preview, arguing that sector concerns over tariffs had not materialized. He anticipated a cyclical upturn driven by demand recovery and inventory restocking, which would further support his bullish stance on Broadcom Inc. (NASDAQ:AVGO).

Broadcom Inc. (NASDAQ:AVGO) is a global technology company that designs, develops, and supplies a wide range of semiconductor and infrastructure software solutions.

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.

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