Should Investors Upgrade to a "Strong Buy" Position in Broadcom (AVGO)?

The question of whether to adopt a "Strong Buy" stance on Broadcom (AVGO) in late 2025 hinges on two critical pillars: the stock's technical momentum and its alignment with the explosive growth of the AI infrastructure sector. A synthesis of recent data and strategic developments suggests that AVGO is not only well-positioned to capitalize on these tailwinds but also exhibits robust technical indicators that justify an aggressive investment thesis.

Short- and Long-Term Technical Momentum: A Bullish Foundation

Broadcom's stock has demonstrated compelling technical strength in both short- and long-term horizons. As of November 2025, the 20-day and 50-day EMAs of $352.36 and $344.50, respectively, are significantly below the current share price of $377.96, signaling a "Buy" signal. The Relative Strength Index (RSI) at 61.16 indicates neutral conditions, avoiding overbought territory, while the Trend Strength Indicator (ADX) of 15.22 reinforces bullish momentum. Notably, the 50-day moving average crossing above the 200-day moving average-a "golden cross"-has historically been a precursor to sustained upward trends.

Longer-term, the stock's trajectory remains intact. Analysts project an average price target of $377.61, with some forecasting a high of $460.00. The Moving Average Convergence Divergence (MACD) line staying above the signal line further underscores continued upward momentum. While the MACD briefly turned negative in recent weeks (1.13), this divergence appears to be a minor correction rather than a reversal, particularly given the stock's resilience above key support levels.

AI Infrastructure Sector: A Catalyst for Growth

The AI infrastructure sector is the linchpin of AVGO's long-term potential. In 2025, U.S. private AI investment surged to $109.1 billion in 2024, with generative AI attracting $33.9 billion-a 18.7% increase from 2023. This momentum is translating into tangible demand for AI hardware and software. For instance, 81% of IT leaders report that C-suite executives are now the primary drivers of AI initiatives, while 70% of companies allocate at least 10% of their total IT budgets to AI-related efforts.

Strategic Partnerships and Analyst Optimism

Recent developments further solidify AVGO's case for a "Strong Buy." Q3 2025 results revealed AI revenue jumping 63% year-on-year to $5.2 billion, with expectations of $6.2 billion in Q4. Analysts have responded with upgraded price targets, including Raymond James' $420 projection, which highlights AI share gains, margin strength, and underappreciated software cash flows as key drivers. Notably, partnerships with OpenAI for custom AI accelerators and NEC for VMware Cloud Foundation underscore Broadcom's ability to secure high-margin contracts in a competitive market.

The stock's recent 11.1% surge on analyst upgrades from firms like Oppenheimer and Barclays reflects growing confidence in its trajectory. While a forward P/E of ~36x may raise valuation concerns, many analysts view AVGO as a less speculative alternative to pure-play AI stocks like Nvidia or Palantir, given its diversified revenue streams and software moat.

Conclusion: A Compelling Case for "Strong Buy"

Combining AVGO's technical strength with its strategic alignment to the AI infrastructure boom, the case for a "Strong Buy" is robust. The stock's bullish technical indicators, coupled with the sector's projected $250 billion revenue in 2025, create a virtuous cycle of demand and growth. Broadcom's ability to leverage its "Double Moat" model-combining high-margin software with cutting-edge semiconductors-positions it to outperform peers in both stable and volatile markets. For investors seeking exposure to AI's next phase, AVGO offers a rare blend of technical momentum, sector leadership, and strategic foresight.