Mizuho analyst Vijay Rakesh has raised the price target for Broadcom Inc. (AVGO) from $310 to $315, maintaining an 'Outperform' rating. This adjustment reflects the firm's positive outlook on the semiconductor sector, particularly in AI and data center markets. Broadcom's Q2 2025 results showcased a record revenue of over $4.4 billion from AI solutions, marking a 46% year-over-year increase. The company anticipates further growth, projecting AI semiconductor revenue to reach $5.1 billion in Q3 2025, driven by continued investments from hyperscale partners.

Broadcom's strong performance in AI semiconductor solutions is expected to lead to industry-leading gross and operating margins, alongside significant free cash flow growth, which reached $6.4 billion in Q2 2025, up 44% year-over-year. The company is well-positioned to capitalize on the growing demand for custom silicon chips for AI computing, as highlighted by ClearBridge Investments. However, some analysts suggest that while Broadcom is a solid investment, other AI stocks may present greater upside potential.