Prediction: The AI Spending Boom Could Be Just Getting Started for This Company

Broadcom (NASDAQ: AVGO) is framed as an AI “spending boom” winner, with 24/7 Wall St citing momentum in the company’s custom-chip strategy. The stock last traded at $351.19, with a 12-month price target of $423.79, implying 20.67% upside and a model buy rating with high confidence. Management highlighted that “Q3 demand was simply hot and we’re just getting started.” Broadcom forecasts AI revenue of about $115 billion for fiscal 2027 and $230 billion for fiscal 2028. Its AI semiconductor revenue rose 221% to $16.70B in fiscal Q3. Risks include wafer, substrate, HBM, and data center power constraints, plus reliance on six XPU customers. The bear-case target is $374.67.