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 objective for Broadcom Inc. (NASDAQ:AVGO) from $400 to $430 while keeping a buy rating. The business highlighted the company’s fiscal fourth-quarter performance, labeling growth as impressive. As stated in the commentary, the firm pointed out that although the results showed good performance, the growth came at a cost.
On December 12, Broadcom Inc. (NASDAQ:AVGO) warned that increasing sales of lower-margin custom AI chips would decrease profitability, which caused the company’s stock to drop more than 11%. Following a 10.8% decline in Oracle shares the day before due to debt-funded AI infrastructure expenditure, the margin warning heightened investor fears about returns from significant AI spending. The business stated that the margins will remain under pressure due to a higher proportion of AI sales, despite reporting a $73 billion backlog to ship in the next 18 months.
The stock has increased by over 46.72% so far this year. Melius Research’s Ben Reitzes stated that, considering 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 for the second half of 2026, and guidance for artificial intelligence revenue in the January quarter were all significant highlights of the last quarter.
Broadcom Inc. (NASDAQ:AVGO) is one of the world’s leading semiconductor businesses, and it has expanded into infrastructure software.
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