Broadcom Inc. (NASDAQ: AVGO) is a standout in AI stocks, with Goldman Sachs raising its price target to $435 per share. Analysts anticipate strong focus on FY26 AI revenue guidance, Google and OpenAI contributions, and gross margins as custom XPU shipments grow.

Expectations are high for Broadcom’s upcoming earnings, with updated guidance likely to surpass the previous 100% yoy AI revenue growth forecast. Analysts project AI revenue for fiscal year 2026 to reach $45.4 billion, a 128% year-over-year increase.

Investors are keen on Broadcom’s role in designing in-house AI chips for Google, looking at Google and OpenAI contributions in 2026. With robust spending at key customers, AI strength in 4Q is expected to lead to updated FY26 AI revenue guidance exceeding 100% YoY.

Broadcom is uniquely positioned in the AI revolution due to its custom chip offerings and networking assets. While AVGO shows promise as an investment, some AI stocks may offer greater upside potential with lower risk. For undervalued AI stock options, explore Insider Monkey’s report on the best short-term AI stock.

Read more at Yahoo Finance: Broadcom (AVGO) Eyes Major AI Growth in 2026; Analysts Raise PT Before Earnings