Broadcom shares surge 3.18% on analyst upgrades and AI infrastructure momentum

Broadcom shares surged 3.18% in pre-market trading on December 22, 2025, driven by renewed investor confidence following analyst upgrades and strong AI infrastructure momentum. Truist, Morgan Stanley, and UBS raised price targets to $510-$475, citing robust AI semiconductor growth and revised 2026 forecasts.

Analysts highlighted Broadcom’s leadership in custom AI accelerators, with CEO Hock Tan noting AI semiconductor revenue could double in Q1 2026.

Recent fiscal results showed a 28% revenue increase to $18 billion, driven by high demand for AI chips. Despite post-earnings volatility linked to margin concerns and customer design shifts, analysts dismissed short-term worries as overreactions.

Institutional activity underscored confidence, with active buying ahead of key guidance updates. The stock’s pre-market rebound aligns with a broader AI sector rally, supported by strategic product launches and bullish sentiment from Wall Street, including praise from Jim Cramer for Broadcom’s long-term positioning in AI infrastructure.