Could Broadcom Inc (AVGO) Double Its Revenue in Two Years?

Broadcom Inc. (NASDAQ:AVGO) is one of the 10 best NASDAQ growth stocks to buy for the next 10 years. Chris Caso of Wolfe Research upgraded Broadcom Inc. (NASDAQ:AVGO) from Peer Perform to Outperform, setting a price target of $400 on January 30. The firm’s price target implies an additional 20.7% upside from the current levels.

AVGO Stock: A Strong Buy Pick Backed by Robust Cash Flow and Dividend Growth

The upgrade came after channel checks indicated the company could ship as many as 7 million tensor processing units by 2028. According to the analyst, other ongoing projects are anticipated to add flexibility, giving Broadcom Inc. (NASDAQ:AVGO) additional optionality in its production and revenue outlook. In Wolfe Research’s bullish scenario, the company’s artificial intelligence revenue is projected to double by 2027. This expansion could drive earnings to around $18 per share, with the stock currently trading at roughly 22 times this projected earnings power.

The research note emphasized that Broadcom’s growing presence in tensor processing units cannot be ignored. Wolfe Research highlighted the company’s accelerating growth trajectory and increasing competitiveness in this key segment, signaling that Broadcom is becoming a major player in the AI hardware space.

Additionally, on January 27, Counterpoint Research reported that the company is expected to maintain its position as a leading artificial intelligence server compute ASIC design partner, capturing around 60% of the market by 2027.

Broadcom Inc. (NASDAQ: AVGO) is a developer, designer, and supplier of semiconductor devices and infrastructure software solutions. It operates through the Infrastructure Software and Semiconductor Solutions segments. The company provides wireless and networking connectivity, server and storage system solutions, and broadband solutions.

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. This article is originally published at Insider Monkey.