Why Broadcom Is The Low-Beta AI Play To Buy

Quick Read

• Broadcom’s custom XPUs and networking silicon drove Q2 AI revenue to $10.8 billion, up 143% year over year across eight straight EPS beats.

• AVGO trades at $416 with a $528 consensus target, implying 27% upside and near-unanimous analyst Buy ratings.

• CEO Hock Tan projects AI revenue exceeding $100 billion in FY2027, backed by signed multi-generation deals with Google, Meta, OpenAI, and Anthropic.

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At $416.08, Broadcom (NASDAQ:AVGO) is a Buy. The real question about AI infrastructure spending is which suppliers own the most durable share of the wallet. Broadcom’s mix of custom silicon, networking, and recurring software makes it the least volatile way to press that bet.

Broadcom designs custom AI accelerators…