UBS Reaffirms Buy Rating on Broadcom (AVGO) Amid AI ASIC Demand and OpenAI, Anthropic Growth

Broadcom Inc. (NASDAQ:AVGO) ranks among the AI stocks beyond NVIDIA that could surge in 2026. UBS reaffirmed its Buy rating and $485 price target for Broadcom Inc. (NASDAQ:AVGO) on June 12, noting the company’s special purpose vehicle deal with Apollo and Blackstone. The firm stated that back-end supply has turned into a concern, leading to adjustments to Broadcom’s schedule for the upcoming v9 version of the Google TPU.

Although the SPV is recording already-existing agreements with OpenAI and Anthropic that Broadcom Inc. (NASDAQ:AVGO) helped scale for calendar 2027, UBS believes it helps define  capacity as well as financing mechanisms. According to UBS, its model already accounts for Anthropic TPU’s around 6GW and OpenAI’s estimated 1.3GW.

The firm predicts that two-year cumulative exports might reach 20GW, or around 13GW, by calendar 2028. The estimated 13GW shipments of Anthropic and OpenAI in 2028, at $10-15 billion per GW for ASIC and networking, suggest $130-190 billion in revenue on its own, with extra contributions from GCP TPU shipments and META.

Broadcom Inc. (NASDAQ:AVGO) is a technology company that specializes in semiconductor devices (through the Semiconductor Solutions segment) and infrastructure software solutions (through the Infrastructure Software segment).

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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