Broadcom Inc. (NASDAQ:AVGO) is one of the 10 Best AI Stocks to Buy in June.
On June 5, TheFly reported that the Erste Group upgraded its rating on Broadcom to Buy from Hold, noting that the company is growing much faster than its sectoral peers
The analyst expressed optimism for the stock, emphasizing that it should continue its upward trend as it benefits from above-average prospects. Meanwhile, DA Davidson increased its price target on Broadcom to $400 from $375 while maintaining a Neutral rating on the stock earlier on June 4. On June 3, Broadcom reported a 48% increase in its consolidated revenue for the second quarter of its fiscal year 2026 to $22.2 billion.
The company also announced that adjusted EBITDA increased 52% year-over-year to $15.2 billion, representing 69% of revenue. The firm attributed the growth to a 143% increase in AI semiconductor revenue at $10.8 billion, mainly driven by increasing demand for custom AI accelerators and AI networking. For the next quarter, the company is targeting 84% consolidated revenue growth to $29.4 billion, with non-GAAP operating margin stable at 67%, reflecting the company’s strong operating leverage.