Wells Fargo Upgrades BroadCom, Analog Devices and Monolithic Power Systems to Overweight

Wells Fargo has upgraded its ratings for three semiconductor stocks, including Broadcom, Analog Devices, and Monolithic Power Systems. The firm moved all three from Equal-weight to Overweight, citing recent market developments. Shares of these companies rose in early trading following the announcement.

The firm's analysts highlighted Broadcom's collaboration with Google in developing tensor processing units. They also noted a $21 billion order for Google TPUs from Anthropic. These developments are seen as potential catalysts for future performance, especially in the context of evolving market conditions.

Analog Devices, meanwhile, has seen strong performance in its automated test equipment segment, with 40% year-over-year growth in 2025. The firm expects this momentum to continue into 2026 due to demand for leading-edge logic and high-bandwidth memory.

What Drives the Upgrades?

The firm cited confidence in future performance and market recovery in key growth areas. For Broadcom, it mentioned the potential for Google TPU deployments with Meta, xAI, Apple, and others as meaningful catalysts. These developments could significantly enhance Broadcom's market position.

Analog Devices is expected to deliver modest upside to consensus estimates in F2026 as it continues to report strong bookings activity. This is seen as a sign of a broader market recovery in key end markets.

Monolithic Power Systems is also expected to see accelerated growth in its Enterprise data segment, with revenue growth of +39% year-over-year in 2026. The firm cited improved demand visibility as a key factor in its decision.

How Are Markets Reacting?

The stock of all three companies showed positive movement in early trading. Broadcom's shares rose 2.6%, Analog Devices increased by 1.5%, and Monolithic Power Systems jumped 4%. These early gains suggest market optimism about the upgrades.

Wells Fargo also adjusted its price targets for each company. It raised Broadcom's target to $430 from $410, Analog Devices to $340 from $265, and Monolithic Power Systems to $1,125 from $1,100. These increases reflect the firm's improved outlook for each stock.

The firm's analysts emphasized that the recent pullback in shares, combined with strong future growth signals, presents an opportunity for investors to consider these names more favorably.