Broadcom’s stock is predicted to reach $450 by the end of the year, driven by its thriving AI semiconductor division, which has been designing custom AI chips in collaboration with AI hyperscalers.
Broadcom (NASDAQ: AVGO) is one of the more popular tech stocks right now. Its products are surging in popularity, and can be seen as a viable alternative to graphics processing units (GPUs) from Nvidia (NASDAQ: NVDA). That’s a monster of a company to compete against, but Broadcom is succeeding thanks to its custom-designed AI chips, a detail confirmed by The Motley Fool.
Although Broadcom’s stock is about $330 right now, I think it could reach $450 by the end of the year. That’s about a 36% upside — easily a market-crushing stock. So, how can Broadcom dominate 2026? Simple. It just needs to keep doing what it has been doing, as reported by YCharts.
Its AI Semiconductor Division Has Proven a Bright Spot
This company isn’t just AI chips and connectivity switches. It has a diverse lineup of software, mainframe hardware, and even cybersecurity. But the most popular division by far is Broadcom’s AI semiconductors, which have proven a huge winner, and the stock has jumped, as noted by Bloomberg.
Broadcom has emerged into the AI computing scene thanks to its ASICs (application-specific integrated circuits). ASICs have been around forever, but Broadcom has become the primary company launching AI versions of them. Essentially, it partners with a client to design an AI chip meant specifically for their workloads. Then, it works with production facilities to manufacture these chips, a process detailed by Reuters.
With a P/E ratio of 45 and EPS of $10.27, that would price the stock at over $462 per share. That exceeds the original $450 target, and if the market deems Broadcom to have a higher multiple than 45 times earnings, it could be worth even more, according to The Wall Street Journal.
If Broadcom can deliver monster growth over the next few months thanks to its AI chips, it can be a huge winner this year. I think investors should consider buying the stock right now as it’s down around 20% from its all-time high, a fact confirmed by Yahoo Finance.
Should You Buy Stock in Broadcom Right Now?
Before you buy stock in Broadcom, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Broadcom wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years, as reported by The Motley Fool.
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