UBS Reaffirms Buy Rating on Broadcom (AVGO) Amid AI ASIC Demand and OpenAI, Anthropic Growth

Sheryar Siddiq

Wed, July 1, 2026 astatine 10:58 AM CDT 1 min read

Broadcom Inc. (NASDAQ:AVGO) ranks among the AI stocks beyond NVIDIA that could surge successful 2026. UBS reaffirmed its Buy standing and $485 terms people for Broadcom Inc. (NASDAQ:AVGO) connected June 12, noting the company's peculiar intent conveyance woody with Apollo and Blackstone. The steadfast stated that back-end proviso has turned into a concern, starring to adjustments to Broadcom's docket for the upcoming v9 mentation of the Google TPU.

Although the SPV is signaling already-existing agreements with OpenAI and Anthropic that Broadcom Inc. (NASDAQ:AVGO) helped standard for calendar 2027, UBS believes it helps define  capableness arsenic good arsenic financing mechanisms. According to UBS, its exemplary already accounts for Anthropic TPU's astir 6GW and OpenAI's estimated 1.3GW.

The steadfast predicts that two-year cumulative exports mightiness scope 20GW, oregon astir 13GW, by calendar 2028. The estimated 13GW shipments of Anthropic and OpenAI successful 2028, astatine $10-15 cardinal per GW for ASIC and networking, suggest $130-190 cardinal successful gross connected its own, with other contributions from GCP TPU shipments and META.

Broadcom Inc. (NASDAQ:AVGO) is simply a exertion institution that specializes successful semiconductor devices (through the Semiconductor Solutions segment) and infrastructure bundle solutions (through the Infrastructure Software segment).

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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