Wells Fargo Turns Bullish on Broadcom Inc. (AVGO), Citing Stronger 2026 Catalysts

Broadcom Inc. (NASDAQ:AVGO) is among the stocks with the best earnings growth for the next 5 years. On January 15, Wells Fargo upgraded its rating on Broadcom Inc. (NASDAQ:AVGO) to Overweight from Equal-weight, while lifting the price target to $430 from $410, which suggests a potential upside of around 24%.

The leading bank noted the recent pullback in Broadcom Inc. (NASDAQ:AVGO), along with strengthening confidence in potentially significant incremental catalysts through 2026, for its bullish outlook. Additionally, Wells Fargo raised its revenue/EPS estimates to $100.3 billion/$10.80 from $97.0 billion/$10.36 for CY26 and to $143.8 billion/$15.35 and from $130.5 billion/$13.90 for CY27.

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These revisions imply improved guidance for the company’s AI semiconductor revenue, now projected to reach $52.6 billion, up 116% YoY, in 2026 and $93.4 billion, climbing 78% YoY, in 2027.

Wells Fargo now forecasts low double-digit YoY growth for the company’s Infrastructure Software segment in FY26, highlighting that Broadcom Inc. (NASDAQ:AVGO) said goodbye to FY25 with nearly $73 billion in Infrastructure Software backlog.

On the same day, Citi reaffirmed a ‘Buy’ rating on Broadcom Inc. (NASDAQ:AVGO) with a price target of $480 following a transfer of coverage. The firm backs its stance with the company’s growing AI sales.

Broadcom Inc. (NASDAQ:AVGO), founded in 1961, provides semiconductor devices and infrastructure software worldwide through its Semiconductor Solutions and Infrastructure Software segments.

While we acknowledge the potential of AVGO to grow, 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 this cheapest AI stock.

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