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KeyBanc Reaffirms Buy on Broadcom (AVGO) Ahead of Earnings, Citing Strong AI Demand

Broadcom Inc. (NASDAQ:AVGO) is one of the Trending AI Stocks on Wall Street’s Radar. On October 6, KeyBanc reiterated an Overweight rating and $420.00 price target on the stock. The rating affirmation comes ahead of the company’s fiscal fourth-quarter 2025 earnings report.

KeyBanc anticipates Broadcom to deliver higher results for the October quarter and provide stronger guidance for the January quarter. These positive results will be supported by strong artificial intelligence demand in networking and AI ASICs (application-specific integrated circuits).

It anticipates F4Q25 revenue of $17.5 billion and earnings per share of $1.87, slightly exceeding consensus estimates of $17.4 billion and $1.86, respectively. From Google’s TPU strength where the company is anticipated to maintain 100% market share through 2026, to the ramp of Meta’s AI ASIC, MTIA v2, several growth drivers seem to be working in favor of the stock.

The firm believes that investor attention will be focused on aspects such as the $10 billion in revenue associated with Broadcom’s fourth ASIC customer, AI outlook and ASIC backlog updated, and also potential additions to its XPU customer pipeline.

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.

READ NEXT:  10 AI Stocks Investors Are Watching Closely and 10 AI Stocks Shaping Wall Street’s Next Big Rally

Disclosure: None.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

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It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

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  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

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