Broadcom Inc. (NASDAQ: AVGO) is a top AI stock analysts are closely watching. Wells Fargo raised its price target to $430, upgrading it to Overweight. Analysts see a recent pullback as a good re-entry point, with confidence in long-term AI revenue and margins. Estimates for 2026 and 2027 show strong growth, especially in AI semiconductor revenue.

The firm has revised estimates for Broadcom, reflecting higher projections for AI semiconductor revenue. Analysts note significant growth in AI Compute and Networking revenue. Despite concerns about falling profitability, Broadcom’s non-AI chip business may remain flat, but its software business is strong with high margins.

Broadcom is well-positioned in the AI revolution with its custom chip offerings and networking assets. While it is seen as a good investment, some AI stocks offer greater upside potential with less downside risk. For undervalued AI stocks benefiting from tariffs and onshoring trends, check out the best short-term AI stock.

Analysts maintain relatively flat revenue estimates for Broadcom’s non-AI semiconductor revenue. They project strong growth in Infrastructure Software revenue and expect Broadcom to maintain a high EBITDA margin. The company’s unique technology offerings make it a key player in the AI revolution.

Read more at Yahoo Finance: Why Wells Fargo Just Turned More Bullish on Broadcom (AVGO)