With strong hedge fund and Wall Street support, Broadcom Inc. (NASDAQ:AVGO) ranks among the best AI infrastructure stocks and has 8.6% upside potential.
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Broadcom Inc. heads into its quarterly report with analysts expecting the company’s AI-driven growth to remain firmly intact.
On June 1, 2026, Morgan Stanley analyst Joseph Moore raised the firm’s price target on the stock to $485 from $470 and maintained an “Overweight” rating ahead of results scheduled after the market close on June 3, 2026. The firm expects Broadcom Inc. to meet elevated investor expectations, supported by a strong ramp in both networking and application-specific integrated circuits (ASICs). Moore also said Broadcom is likely to retain a strong majority of the Tensor Processing Unit (TPU) business.
That view follows a strong fiscal first-quarter report released on March 4, 2026.
Broadcom Inc. reported record revenue of $19.3 billion, up 29% year-over-year, while AI semiconductor revenue climbed 106% to $8.4 billion, driven by demand for custom AI accelerators and AI networking. Adjusted EBITDA reached a record $13.1 billion, representing 68% of revenue.
Management guided for fiscal second-quarter revenue of approximately $22.0 billion, implying 47% year-over-year growth, with adjusted EBITDA expected to remain around 68% of revenue. Semiconductor revenue is projected to reach $14.8 billion, including AI semiconductor revenue of roughly $10.7 billion, up about 140% from a year earlier. Infrastructure software revenue is expected to reach approximately $7.2 billion.
Broadcom Inc.’s management also said it has secured key component capacity through 2028 and stated it has a line of sight to AI chip revenue exceeding $100 billion in 2027, reflecting the scale of demand from hyperscale customers and custom AI silicon programs.
Broadcom Inc. is a technology company that specializes in semiconductor devices (through the Semiconductor Solutions segment) and infrastructure software solutions (through the Infrastructure Software segment).
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