Broadcom Shares Garner Analyst Praise Amid Divergent Investor Activity

Broadcom Inc. finds itself in the spotlight following a meeting with Bernstein analyst Stacy Rasgon. His assessment is clear: concerns regarding the chip designer's position in the custom AI chip market are "significantly overblown." Rasgon emphasized that Broadcom remains deeply embedded within the supply chains of major hyperscalers. He reaffirmed his "Outperform" rating and a price target of $475 per share.

Adding positive context to the sector, manufacturing partner Taiwan Semiconductor Manufacturing Company (TSMC) reported robust figures. The world's leading contract chipmaker announced December 2025 revenue of NT$335 billion, representing a year-over-year increase of 20.4%. The sustained demand for high-performance computing indirectly confirms promising prospects for Broadcom's custom silicon division.

Consensus Among Market Experts

Bernstein is not alone in its bullish stance. In early January, Goldman Sachs added Broadcom to its "US Conviction List," citing the company's dominant position in enterprise networking. Previously, in mid-December, UBS analyst Timothy Arcuri raised his price target to $475. He projects revenue from AI chip-related business will exceed $60 billion for the 2026 fiscal year.

With the stock currently trading around $347, these analyst positions suggest a consensus view of substantial upside potential.

Should investors sell immediately? Or is it worth buying Broadcom?

A Mixed Picture from Major Investors

Recent activity among key investors presents an intriguing contrast. On January 8, Cathie Wood's ARK Invest purchased 31,573 Broadcom shares via the ARK Next Generation Internet ETF. This move signals renewed interest from active growth-focused fund managers.

Concurrently, regulatory filings show that CEO Hock E. Tan sold 70,000 shares on January 6, a transaction valued at approximately $24.3 million. Such sales are frequently executed under pre-established trading plans and do not necessarily reflect management's outlook. Nevertheless, the dynamic creates a nuanced scene: while institutional buyers accumulate shares, company insiders are reducing their holdings.

Sustained Momentum

Broadcom's equity has appreciated roughly 149% since April 2025. Bolstered by the current analyst endorsements and solid industry fundamentals, the path toward the $475 price target appears plausible, provided the company's core growth narrative remains unchanged.