Is Broadcom (AVGO) One of the Best Performing AI Stocks to Invest In?

Broadcom Inc. (NASDAQ:AVGO) is one of the 15 Best Performing AI Stocks Heading into 2026. On November 25, Goldman Sachs increased its price target on Broadcom Inc. (NASDAQ:AVGO) from $380 to $435 and maintained a Buy rating on the stock ahead of the company’s Q4 results.

The research firm expects investors to focus on Broadcom Inc.’s (NASDAQ:AVGO) AI revenue guidance for fiscal year 2026. This revenue guidance is expected to include contributions from Google and OpenAI. Goldman Sachs believes that the investors will also be looking at how the gross margins develop as demand for XPUs grows. The firm’s analyst also noted that expectations are high for this quarter and investors are optimistic due to strong results from competitors and good news from XPU customers including Google, which recently launched its Gemini 3.

Is Broadcom (AVGO) One of the Best Performing AI Stocks to Invest In?

On November 25, TipRanks reported that Bank of America said that Broadcom Inc. (NASDAQ:AVGO) has “the upper-hand” in the AI market. The research bank expects the company’s AI sales to grow more than 100% year-over-year in calendar year 2026. This growth is tied to additional TPU projects and Anthropic projects.

However, Bank of America analysts warned that if Google licenses more Tensor Processing Units (TPUs) directly, it could reduce Broadcom Inc.’s (NASDAQ:AVGO) total addressable market for developing ASICs for other clients.

In other news, Mizuho also said that Google’s plan to offer TPU capacity to Meta Platforms, Inc. (NASDAQ:META) in 2026, alongside growing demand from Anthropic, could offer a short-term boost to Broadcom Inc.’s (NASDAQ:AVGO) ASIC business. The analysts at Mizuho said that Broadcom Inc. (NASDAQ:AVGO) remains “our TOP PICK.”

Broadcom Inc. (NASDAQ:AVGO) is an American multinational technology company that designs, develops, and supplies a wide range of semiconductor, enterprise software, and security solutions.

While we acknowledge the potential of AVGO as an investment, 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 a 100x upside potential, check out our report about the cheapest AI stock.

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