Mizuho Lifts PT on Broadcom (AVGO) Stock
A technician working at a magnified microscope, developing a new integrated circuit.
In Q2 2025, Broadcom Inc. (NASDAQ:AVGO) achieved record revenue due to continued momentum in AI semiconductor solutions and VMware. Its Q2 2025 AI revenue saw an increase of 46% YoY to more than $4.4 billion, thanks to the strong demand for AI networking. Broadcom Inc. (NASDAQ:AVGO) expects growth in AI semiconductor revenue to accelerate to $5.1 billion in Q3 2025, delivering 10 consecutive quarters of growth, with the company's hyperscale partners continuing to invest. In Q2 2025, the company saw a record FCF of $6.4 billion, up 44% YoY.
ClearBridge Investments, an investment management company, released its Q2 2025 investor letter. Here is what the fund said:
'Adding Broadcom Inc. (NASDAQ:AVGO), a leader in semiconductor design for communications and networking devices, enables the Strategy to better participate in the development of custom silicon chips for AI computing. Broadcom is well-positioned for continued healthy investment in AI, working with several large technology companies to develop custom silicon that we expect to grow alongside robust demand for Nvidia's all-purpose GPUs. The company's cloud infrastructure software business should also continue to grow for the next several years given its entrenched position within enterprises.'
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.
READ NEXT: 13 Cheap AI Stocks to Buy According to Analysts and 11 Unstoppable Growth Stocks to Invest in Now
Disclosure: None. This article is originally published at Insider Monkey.
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