UBS Lifts Price Target on Broadcom Inc. (AVGO) Despite Selloff

The banal is down 13% implicit the past week amid a large selloff pursuing its fourth-quarter 2025 net telephone connected December 11, during which absorption noted that accrued AI income were pressuring margins. Moreover, investors were near disappointed that the institution did not stock its AI gross forecast for the coming year.

According to TipRanks, the UBS expert told investors successful a probe enactment that discussions with absorption suggest the plunge is an overreaction, and that comments connected AI semiconductor gross bespeak anticipation of a beardown showing successful fiscal 2026.

Shares person slumped contempt Broadcom Inc. (NASDAQ:AVGO) reporting beardown results for the 4th and beating estimates for some gross and profit. The chipmaker posted a gross of $18.02 cardinal successful Q4, up 28% year-over-year and supra expectations of $17.49 billion. Diluted EPS stood astatine $1.95, comfortably surpassing estimates of $1.87 per share.

As of the adjacent of concern connected December 17, Wall Street analysts person a Strong Buy standing connected the banal with a one-year mean stock terms people of $462.30, representing an upside of 36%.

Broadcom Inc. (NASDAQ:AVGO) is simply a starring developer, manufacturer, and supplier of semiconductor and infrastructure bundle products. The banal has returned 42% year-to-date.

While we admit the imaginable of AVGO arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you're looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.

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