Broadcom's AI chip momentum sustained; custom silicon and networking gains accelerating competitive traction.

Broadcom Inc. (NASDAQ:AVGO) is one of the top stocks to buy according to Whale Rock Capital Management. On June 30, Jefferies analyst Blayne Curtis reiterated his Buy rating and $550 price target on Broadcom, citing an improving outlook for the company's AI chip business.

A key pillar of Curtis' thesis is Broadcom's improving visibility into FY2028 earnings. Jefferies ran a scenario analysis projecting earnings per share between $30 and $40 for that year, which translates to a valuation multiple of roughly 10 times earnings.

Curtis also highlighted Broadcom's on-track roadmap for custom Tensor Processing Units—the AI chips it co-designs with Google. This partnership now extends through 2031 under a long-term agreement that guarantees minimum revenue and offers potential upside of more than $500 billion over that period.

Beyond Google, Broadcom is broadening its customer base for application-specific integrated circuits (ASICs)—custom chips built for individual AI customers. This diversification is an encouraging sign that the company is reducing reliance on a single buyer. One example is Broadcom's new partnership with OpenAI, through which the two companies unveiled Jalapeno, OpenAI's first custom AI accelerator chip designed specifically for running large language model inference workloads.

Broadcom Inc. is a semiconductor and infrastructure software company that designs, develops, and supplies semiconductor devices and software solutions, including networking connectivity products, wireless device connectivity components, server and storage system solutions, and broadband access technologies.