This Stock Just Became One of the Most Important AI Picks. Here’s Why

Broadcom (AVGO) has reported a remarkable 221% year-over-year surge in AI revenue, with 24/7 Wall St. assigning it a BUY rating and a $422 price target, indicating an 18.92% upside potential. The company's growth outpaces Marvell (MRVL) by more than double and matches NVIDIA's (~25x forward multiple). Broadcom's CEO Hock Tan forecasts $350 billion in AI semiconductor shipments within two years and targets $30 EPS by fiscal 2028, driven by six major XPU customers.

Despite not being included in 24/7 Wall St.'s list of best stocks to buy, Broadcom's bullish outlook is evident in their Q3 FY2026 AI semiconductor revenue of $16.70 billion, a 54% quarter-over-quarter increase, and management's expectations of fiscal 2027 and 2028 AI revenues of $115 billion and $230 billion, respectively.