Could Broadcom (AVGO) Really Soar to $400? These Pros Think So.

"After the latest 20% past-week melt-up in Broadcom ( NASDAQ:AVGO) stock, perhaps the Street-high price target of $400 isn't all too outlandish, after all. In fact, Wall Street may need to revisit the drawing board again, with new upside targets following that impressive round of quarterly earnings results. Now up close to 60% year to date and 134% over the past full year, AVGO shares are now hotter than Nvidia ( NASDAQ:NVDA) stock."

"Indeed, it's not hard to envision a scenario that sees custom silicon eating more into the share of GPUs. Before you dump your Nvidia shares and back up the truck on AVGO after its latest parabolic run, though, it's likelier than not that increased investment in custom AI solutions won't leave much of a dent in demand for Nvidia's next-generation offerings, at least over the medium term. After all, there's an AI infrastructure boom going on."

"Of course, only time will tell what the AI spenders will do. Nvidia's profoundly sticky ecosystem (think CUDA) is worth staying in, especially if pursuing custom silicon proves too pricey at this juncture, when it's not all too clear what kind of returns on AI investment will actually be. Given such uncertainties, owning both names seems like the best move."

Broadcom's stock surged roughly 20% in one week and is up about 60% year-to-date and 134% over the past year after strong quarterly results. Analysts are raising upside price targets, with some citing $400. Broadcom benefits from demand for custom AI silicon and appears positioned to capture AI infrastructure spending. Nvidia retains dominance through GPUs and a sticky CUDA ecosystem, making displacement by custom silicon uncertain in the medium term. Market uncertainty about AI returns makes diversification sensible, so holding both Broadcom and Nvidia can balance potential upside and ecosystem advantages.

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