Broadcom (AVGO) is up 14% on the year, a solid return for what many analysts rate as an underrated AI chip stock. Major companies are lining up for Broadcom’s custom AI chips, making the company’s assets a valuable commodity. Most recently, the firm inked new AI chip deals with Alphabet (GOOGL) and Anthropic. With competition getting tight in AI and AVGO slipping in price this week, could Broadcom’s stock be an underrated buy for the rest of 2026?

Many experts on Wall Street forecast a bright future for the semiconductor developer. Renewed AI pessimism has dragged AVGO and other AI stocks lower in the last two months. However, it remains a healthy competitor to AI chipmaker Nvidia (NVDA), and was one of the hottest stocks last year as the AI wave roared on.

Furthermore, Broadcom (AVGO) recently posted strong quarterly results yet again and highlighted just how massive its growth opportunities still are. Its first-quarter fiscal 2026 earnings were strong, with the company’s revenue totaling $19.3 billion for the period ending Feb. 1, which was an increase of 29% from the same period a year ago. Its net income of $7.3 billion rose at an even faster rate of 34%.

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The growth of AVGO is expected to surge even faster in the coming years, according to several forecasts. EPS is expected to grow 66% in FY 2026, followed by 57% growth in FY 2027. Additionally, CEO Hock Tan says the company’s AI chip revenue will exceed $100 billion in 2027. The continued boom in revenue would be a direct spark for AVGO shares to continue their rally. Combined with successful partnerships with companies like Alphabet and revenue expected to grow at a similar clip, AVGO is a promising stock investment at its current price.