Evercore Stays Bullish on Broadcom (AVGO) After Earnings, Lifts Target to $490

Broadcom Inc. (NASDAQ:AVGO) is one of the AI Stocks in the Spotlight for InvestorsOn December 12, Evercore ISI raised its price target on the stock to $490.00 from $403.00 while maintaining an Outperform rating. The firm views Broadcom’s post-earnings dip as an attractive entry point based on its AI trajectory. AVGO’s revenue visibility further supports upside.

Broadcom posted October quarter results on December 11 after markets closed. The company’s revenue came in at $18.02 billion, solidly beating expectations of $17.46 billion. Meanwhile, adjusted earnings per share (EPS) rose 37% to $1.95, beating expectations of $1.87.

More importantly, growth in the artificial intelligence (AI) semiconductor business came in at 74%, beating Broadcom’s guidance of 66% growth. Despite these numbers, Broadcom shares plunged an estimated 4% after the earnings call ended.

The firm believes that this post-earnings plunge offers an attractive entry point for the stock.

“Buyers of Weakness. We reiterate our O/P rating for AVGO after it printed OctQ revenues 3% above and raised JanQ revenues by 4%, with AI revenues accelerating from +74% YoY to +100% YoY and management highlighting visibility for AI revenues to at least 2x in both FY26 and FY27. We believe post-earnings offer an attractive entry point with shares lower by 5% AH considering implied 2027 P/E of 29x and 2026 PEG of 1.1x. We increase our PT to $490 reflecting 40x our 2027 EPS of $13.36 discounted back.”

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.