Broadcom (AVGO) stock has long been viewed as a high-potential buy on Wall Street. However, that perception took a significant hit with the uncertainty facing the global market. The chipmaker’s stock is only up 1% year to date after a sluggish start to 2025. Fortunately, AVGO is finally showing momentum, up 26% in the last 30 days alone. Analysts are also still confident in the stock to rebound, and suggest it could hit a new ATH of $250 soon.

There should be room for AVGO to climb, as such, according to Melius analyst Ben Reitzes. The expert raised his price target on Broadcom AVGO stock to $283 from $198 and kept a Buy rating in his latest research note. The hefty increase reflects an assigned price-to-earnings multiple of 30 times Broadcom’s forecast earnings for fiscal 2027, up from 22 times previously. While Broadcom remains second to Nvidia in the AI chip sector, second place is still a solid investment and must-have stock, says the analyst. “Companies’ dual-source compute from both Nvidia and Broadcom for flexibility around different workloads—but all remain committed to both,” Reitzes wrote.

Broadcom AVGO Stock to Continue Recent Growth in 2025?

Broadcom stock has delivered substantial long-term growth, soaring over 300% since early 2023. The company has a stable balance sheet, an impressive client base, and a unique product. The chipmaker is a contributor to a growing market in AI and chip technology. Its chips are used in a wide range of applications, and the chip maker’s numbers speak for themselves. The growing demand for Broadcom’s chips and the rapid expansion of the AI industry continue to drive business growth, making it a promising investment option.

“With 7 XPU customers now confirmed, the serviceable addressable market could arguably be increased later in the decade to a range of $140-$210 billion—with Broadcom garnering well over $70 billion in AI revenue later in the decade given its market share at these 7 customers,” Reitzes also wrote in his analysis. “We estimate the AI networking portion of Broadcom’s revenue amounts to about $6 billion in 2025, growing ~50% y/y [year-over-year], and can grow well over 20% long-term.”

Also Read: Broadcom (AVGO) Has 600% Jump in 5 Years: $2T Potential?

Broadcom (AVGO) stock is trading near the top of its 52-week range and above its 200-day simple moving average. Thus, it may have only a bit more room to grow, perhaps just enough to hit a new ATH in 2025. CNN analysts suggest the stock is a 9/10 buy, and forecast $300 in the next 12 months. As for 2025, it is very likely that AVGO could end the year trading above $250, perhaps even $260. Out of 43 analysts surveyed by CNN, 88% suggest buying AVGO, while the remaining 12% suggest holding.