Broadcom Inc. (NASDAQ: AVGO) is highlighted as an AI stock not to overlook, with UBS analyst Timothy Arcuri raising the price target to $345.00 ahead of the company’s fiscal third-quarter earnings report on September 4th. Analysts anticipate earnings of $1.66 per share and a 21% revenue increase to $15.82 billion for Q3.

UBS analyst Timothy Arcuri predicts in-line results for AVGO, with expectations of raised guidance for the fiscal fourth quarter due to Google’s new AI chip, TPUv6p. The chip relies on Broadcom’s custom silicon, contributing to a projected 60% year-over-year increase in AI revenue for 2025 and a 51% year-over-year increase in wafer requirements.

The acceleration of TPUv6p is expected to continue into 2026, with a significant increase in wafer requirements and AI-related networking growth in fiscal 2026. Broadcom is seen as uniquely positioned in the AI revolution due to its custom chip offerings and networking assets, reaffirming a substantial serviceable addressable market for custom chips.

While acknowledging Broadcom’s potential as an investment, some AI stocks may offer greater upside potential with less downside risk. For investors seeking undervalued AI stocks that could benefit from current market trends, consider exploring other options beyond AVGO.

Read more at Yahoo Finance: UBS Lifts Broadcom (AVGO) Price Target to $345 Ahead of Earnings