Seaport Global Sees Big AI Potential for Broadcom (AVGO) Stock

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. The company’s solutions include service provider and enterprise networking and storage, mobile device and broadband connectivity, mainframe, cybersecurity, and private and hybrid cloud infrastructure and it serves the data center, cloud, networking, broadband, wireless, storage, industrial, and enterprise software markets.

A technician working at a magnified microscope, developing a new integrated circuit.

On April 30, Seaport Global Securities initiated coverage on Broadcom Inc. (NASDAQ:AVGO) by assigning a “Buy” rating and setting a price target of $230. The firm’s analyst believes that the company is in a great position to benefit from the current boom in AI spending and suggested that the market has not yet fully recognized this potential in the stock’s price. Broadcom Inc. (NASDAQ:AVGO) has key competitive strengths in the custom silicon market through its networking products and leading intellectual property, especially in SERDES technology.

The firm’s analysis also highlighted the company’s impressive customer base, which includes Google, Apple, and TikTok, as a key advantage. Seaport Global’s analyst described Broadcom Inc. (NASDAQ:AVGO) is similar to a public equity investor with a sizable semiconductor portfolio and highlighted the company’s status as a top operator in the semiconductor industry.

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 100x upside potential, check out our report about the cheapest AI stock.

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Disclosure: None.