By Ghazal Ahmed
Publication Date: 2026-01-20 20:41:00
Broadcom Inc. (NASDAQ:AVGO) is one of the AI Stocks Making Waves on Wall Street. On January 14, RBC Capital analyst Srini Pajjuri initiated coverage on the stock with a Sector Perform rating and a price target of $370. He flagged margin and valuation concerns for AVGO, but also sees upside potential in artificial intelligence.
Analyst Srini Pajjuri pointed out three key debates surrounding the stock: gross margin impact from artificial intelligence growth, sustainability of Anthropic’s ramp-ups, and the magnitude and timing of potential OpenAI opportunities.
He noted that he sees upside potential to 2026 estimates stemming from robust demand at Google/Meta. Moreover, Anthropic’s TPU racks are anticipated to be a major driver in the second half of 2026, even though the racks come with lower margins, and the sustainability of Anthropic’s demand beyond the first half of 2027 also remains unclear.
Due to Broadcom’s multiple commitments, the firm is also taking a…
