Broadcom Inc. (NASDAQ:AVGO) is among the Growth Stock Portfolio: 12 Stock Picks by Ken Fisher.
On December 12, 2025, Thefly reported that Deutsche Bank increased its price target for Broadcom Inc. (NASDAQ:AVGO) from $400 to $430, maintaining a Buy rating. The company highlighted the company’s fiscal fourth-quarter performance and called the growth impressive. As indicated in the commentary, the firm noted that while the results showed good performance, the growth came at a cost.
On December 12, Broadcom Inc. (NASDAQ:AVGO) warned that increased sales of lower-margin custom AI chips would decrease profitability, causing the company’s shares to fall more than 11%. Following a 10.8% drop in Oracle shares the previous day due to debt-funded AI infrastructure spending, the margin warning raised investor fears about the returns from significant AI spending. The company said margins will remain under pressure due to a higher proportion of AI sales, despite reporting an order book of $73 billion to ship in the next 18 months.
The stock has risen more than 46.72% so far this year. Ben Reitzes of Melius Research said that given the high spending plans, panic is premature.
Meanwhile, the announcement of a new custom AI chip in 2026, a new $11 billion order for an AI chip from Anthropic in the second half of 2026, and AI revenue forecast in the January quarter were major highlights of the latest quarter.
Broadcom Inc. (NASDAQ:AVGO) is one of the world’s leading semiconductor companies and has expanded into infrastructure software.
While we recognize AVGO’s potential as an investment, we believe certain AI stocks offer greater growth potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that’s also benefiting significantly from Trump-era tariffs and the offshoring trend, check out our free report on best short-term AI stock.
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