Broadcom Inc. (NASDAQ:AVGO) is one of Goldman Sachs’s top growth stock picks. On February 17, Cathie Wood’s ARK ETF disclosed that it acquired 24,205 shares of Broadcom Inc. (NASDAQ:AVGO), valued at about $7.87 million. This was after the fund divested $13.7 million worth of Teradyne Inc. (NASDAQ:TER) stock.
Separately, on February 10, UBS analyst Timothy Arcuri reiterated a Buy rating and maintained a $475 price target on Broadcom. Arcuri cited accelerating demand for Broadcom’s custom AI chip products, specifically its Tensor Processing Units (TPUs). For that reason, he projected that Broadcom will ship approximately 3.7 million TPU units in calendar year 2026, and expects the shipment to rise to more than 5 million units in calendar year 2027.
On the product roadmap, Arcuri noted that more than half of 2027 shipments will be the TPU v7 model. The next-generation TPU v8ax will take over as the majority of shipments in 2028, the analyst added.
Based on those shipment projections, UBS now forecasts Broadcom’s total AI revenue will reach approximately $60 billion in FY2026, a roughly 200% year over year increase. This revenue will then grow further to about $106 billion in FY2027, which is an additional 80% year over year, and reaching around $150 billion by FY2028.
Broadcom Inc. (NASDAQ:AVGO) is a semiconductor and infrastructure software company. It designs and supplies products including custom chips, networking solutions, and enterprise software used across industries such as cloud computing, telecommunications, and data centers.
While we acknowledge the potential of AVGO as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
