Broadcom stock is becoming Wall Street’s favourite AI trade for 2026: here’s why

Broadcom stock AVGO has emerged as a rare consensus pick among major Wall Street houses for 2026.

Bank of America, JPMorgan, and Jefferies all point to custom AI chips and high-speed networking as the company’s growth runway.

The semiconductor giant sits at an inflection point as hyperscalers shift away from pure GPU dependence toward proprietary accelerators designed specifically for their workloads. ​

The theory is straightforward, as Google, Meta, OpenAI, and others build in-house AI silicon, Broadcom becomes essential infrastructure.

The company provides design expertise, packaging capabilities through its 3.5D XPU platform, and networking switches like Tomahawk 6 that tie everything together.

This vertical slice of the AI stack, custom silicon plus the networking plumbing, is what draws bulls to Broadcom for the next phase of spending.​

Banks cite ASICs and networking as Broadcom’s edge

Bank of America analyst Vivek Arya named Broadcom a top large-cap chip pick for 2026,…