Broadcom (NASDAQ: AVGO) on Wednesday received a bullish endorsement from Morgan Stanley, which maintained its ‘Overweight’ rating on the stock.

The bank’s analyst, Joseph Moore, also raised the stock’s price target to $338 from the previous $270. As of press time, Broadcom was trading at $297.42, implying an upside potential of 13.6% based on the new target.

The revised target reflects growing confidence in Broadcom’s long-term prospects, particularly driven by AI-related growth and the company’s strong positioning in the post-2027 Serviceable Addressable Market (SAM).

Morgan Stanley’s upgrade was driven by an increase in the 2026 MW EPS multiple from 40x to 50x, applied to a projected EPS of $6.77.

Additionally, the firm called Broadcom the “most uncontroversial AI name” following the 2027 SAM reset, citing strong visibility into its long-term outlook and a market opportunity that is both ambitious and realistic.

The analyst commentary emphasized Broadcom’s unique standing among AI peers, pointing to its compelling growth story and significant upside potential.

Wall Street bullish on AVGO stock price 

Meanwhile, Wall Street remains broadly bullish on Broadcom. Of 30 analysts covering the chipmaker as polled by TipRanks, 28 rate it a ‘Buy’ and two suggest ‘Hold.’ None recommends selling.

The average 12-month price target for AVGO stands at $300.96. However, projections vary widely, with the most bullish target at $400 and the most conservative at $210.

Notably, this positive sentiment comes on the heels of Broadcom beating Wall Street expectations in its second-quarter earnings report. 

The company posted adjusted earnings per share of $1.58, slightly ahead of the $1.56 forecast, while revenue came in at $15 billion, just above the $14.99 billion estimate.

Broadcom also issued strong guidance for the current quarter, projecting $15.8 billion in revenue, topping analysts’ expectations of $15.7 billion.

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