Broadcom Inc. (AVGO) is one of the most successful semiconductor companies in the world, and now Jefferies and Barclays are both naming it their top picks in the AI chip industry for 2025.
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Here’s why this tech giant is grabbing so much attention:
Technological Rivals to Nvidia
On the technological side, Broadcom’s advanced chips, especially its custom-designed ASICs, are essential for AI applications. 3.5D packaging and silicon photonics have positioned Broadcom as a strong competitor to Nvidia (NVDA). These advanced technologies drive significant revenue, with AI chip sales expected to exceed $60 billion by 2027.
What Do Jefferies and Barclays Say
Jefferies has named Broadcom a top pick for 2025, pointing to its rapidly growing AI chip market and robust customer base. They’ve raised their price target to $300. Barclays also sees Broadcom’s potential, highlighting its custom silicon solutions and projecting major growth in the AI semiconductor market. They’ve upgraded Broadcom to Overweight with a $260 price target.
TipRanks’ Smart Score
Broadcom has a TipRanks Smart Score of 8, indicating strong potential to outperform. Analysts rate it as a Strong Buy, with an average price target of $237.60. Blogger sentiment is bullish, with 70% positive sentiment, higher than the sector average. Hedge funds have significantly increased their holdings by 520.6K shares last quarter despite recent insider sales totaling $41.6 million.
Is AVGO a Buy, Hold, or a Sell?
On Wall Street, Broadcom is a Strong Buy. The price target for AVGO stock is $237.60, reflecting a 2.05 downside potential.
AVGO in Cinclusion
Broadcom’s journey to becoming an AI giant has been marked by consistent growth and strategic innovation. Today, Broadcom’s custom-designed ASICs and innovations like 3.5D packaging and silicon photonics have positioned it as a worthy competitor in the AI sector. With AI chip sales projected to exceed $60 billion by 2027, Broadcom’s trajectory has been largely smooth, solidifying its status as a leader in the industry.
