Broadcom Inc. (NASDAQ:AVGO) surges 3.18% on analyst upgrades amid AI growth optimism

Broadcom Inc. (NASDAQ:AVGO) surged 3.1769% in pre-market trading on December 22, 2025, signaling renewed investor confidence amid a series of analyst upgrades. The stock, already a top holding among hedge funds in 2025, has drawn consistent bullish attention from major financial institutions.

Truist analysts raised the price target to $510 from $500 on December 19, maintaining a "Buy" rating. This followed Morgan Stanley's reaffirmation of its "Buy" stance with a $462 target on December 17, positioning Broadcom as a key semiconductor play for 2026. UBS also adjusted its target upward to $475 on December 15, citing management's guidance on artificial intelligence-driven semiconductor revenue. The firm highlighted a projected tripling of AI semi revenue to $60 billion in fiscal 2026, alongside revised estimates of $135 billion in total revenue and $14.15 in earnings per share for fiscal 2027.

Analysts collectively emphasize that the recent market pullback reflects an overcorrection rather than fundamental weakness, with AI-related growth expectations driving optimism. The cumulative upgrades suggest a consensus view that Broadcom remains well-positioned to capitalize on the expanding semiconductor and software infrastructure sectors.

The stock's upward momentum has coincided with a broader shift in the technology sector, where AI integration is driving demand across semiconductors and cloud infrastructure. Investors are particularly focused on the potential for AI to enhance operational efficiency and unlock new revenue streams in software and data processing. This trend aligns with Broadcom’s strategic pivot toward software solutions and AI-driven technologies, reinforcing its long-term growth narrative.

Looking ahead, the company is expected to continue leveraging its diversified portfolio of software and semiconductor assets to maintain a leadership position in key markets. With rising demand for AI-related products and a robust earnings outlook, Broadcom's trajectory could see further upward movement, particularly if global semiconductor demand continues to expand in 2026.