--- title: "AVGO and PM: Analysts Say These Are Their Top Picks for 2026" type: "News" locale: "en" url: "https://longbridge.com/en/news/266267164.md" description: "Analysts have identified Broadcom (AVGO) and Philip Morris (PM) as top stock picks for 2026. Broadcom, a leading semiconductor company, benefits from the AI boom and its partnership with OpenAI. It has shown strong revenue growth and is expected to see significant gains from ASICs. Philip Morris offers diversification in a different industry. Analysts predict a 40% upside for Broadcom, with a $480 price target." datetime: "2025-11-17T22:56:32.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/266267164.md) - [en](https://longbridge.com/en/news/266267164.md) - [zh-HK](https://longbridge.com/zh-HK/news/266267164.md) --- # AVGO and PM: Analysts Say These Are Their Top Picks for 2026 The stock market has been a bit volatile recently, with doubts about the timing of interest-rate cuts fueling sharper day-to-day swings. Investors have also been on edge ahead of high-stakes Nvidia earnings and the delayed September jobs report, both of which could help clarify whether the recent momentum has room to run. ### Meet Your ETF AI Analyst - Discover how TipRanks' _ETF_ AI Analyst can help you make smarter investment decisions - Explore ETFs TipRanks' users love and see what insights the **_ETF_ AI Analyst** reveals about the ones you follow. But overall, the broader backdrop remains constructive enough that analysts are already turning their attention to what comes next. With only a few weeks left in the year, Wall Street is rolling out its Top Picks for 2026, using the calendar shift to highlight the stocks they see as well-positioned for the year ahead. Among the standouts, **Broadcom** **(NASDAQ:AVGO)** and **Philip Morris (NYSE:PM)** are emerging as 'top picks' for 2026. Both are leaders in their respective arenas, and in completely different industries, offering investors built-in diversification. Let's see what makes them so compelling. **Broadcom** We'll start with Broadcom, one of the world's leading semiconductor companies. The firm is a heavyweight by any standard. Over the past four quarters (3Q24 through 2Q25), it generated just under $60 billion in revenue, placing it fourth among global chipmakers. Its market cap, near $1.62 trillion, makes it the second-largest publicly traded semiconductor company and the sixth-largest among all trillion-dollar names on Wall Street. Broadcom's stock has also outpaced the broader market this year, advancing 48% versus the NASDAQ's 18% gain. A significant portion of Broadcom's recent momentum stems from the AI boom driving demand across the tech sector. While its core portfolio – ranging from high-end cable modems to advanced fiber-optic components – continues to perform well, the company has earned increased recognition for its AI-oriented semiconductor offerings. In particular, Broadcom has become a leader in application-specific integrated circuits (ASICs). These custom-designed ASICs are essential in cloud computing and AI workloads. Although they carry higher upfront costs, they deliver meaningful gains in efficiency, offering more processing power per watt consumed. That makes them especially valuable for AI systems, data centers, and large-scale cloud infrastructure, where power demands are substantial. Broadcom's scale gives it the ability to manufacture ASICs and other networking and semiconductor products at levels that meet the needs of hyperscalers and enterprise customers. This production flexibility has solidified the company's position across high-tech supply chains, particularly in server architectures and high-speed networking. Broadcom also plays an important role in industry R&D, helping shape the next generation of processors and infrastructure hardware. Broadcom is also deepening its ties to the AI ecosystem. In mid-October, the company unveiled a multiyear partnership with OpenAI, the creator of ChatGPT, to co-develop next-generation accelerators and Ethernet solutions. The first deployments from this collaboration are expected to roll out in the second half of 2026 and continue through 2029. Also of note, Broadcom has been reporting steady quarterly gains in revenue and earnings over the past several years. In its last financial release, covering fiscal 3Q25, the company showed quarterly revenue of $15.95 billion. This was up 22% year-over-year and beat the forecast by $129.3 million. At the bottom line, Broadcom's $1.69 in non-GAAP EPS was up from $1.24 in the prior-year period and was 3 cents better than had been expected. For Jefferies analyst Blayne Curtis, the key is the increasingly large potential of ASICs to drive Broadcom's revenue and profits over the next several years. "We return to AVGO as our top pick as we see the larger upside to estimates as ASICs hit an inflection point. Google has long been the main ASIC customer for AVGO but those volumes should become much more meaningful in C26/27. Google continues to see the amount of tokens they process per month rise and announced 1,300T in October up from 480T in April 2025. This should grow even more as compute is needed for multimodal models (Google noted in mid-October over 275M videos had already been made with VEO)… Beyond the upside from GOOG, we expect Meta to ramp its first true AI chip (w/ HBM) in Q326 with an OAI ASIC in Q426. We expect the OAI engagement to drive more upside given the 10GWs plans through 2029. We model $10B in C27 but that could easily scale to $40-50B per year in C28+," Curtis opined. Given this outlook, Curtis assigns AVGO a Buy rating with a $480 price target, suggesting 40% upside over the next year. (To watch Curtis' track record, click here) The broader Street is also upbeat. AVGO boasts a Strong Buy consensus based on 30 recent reviews, including 28 Buys and just 2 Holds. With shares trading at $342.65, the average price target of $398.73 implies a further 16% climb from here. (See **AVGO stock forecast**) ### Related Stocks - [PM.US](https://longbridge.com/en/quote/PM.US.md) - [AVGO.US](https://longbridge.com/en/quote/AVGO.US.md) - [SOXL.US](https://longbridge.com/en/quote/SOXL.US.md) ## Related News & Research - [Broadcom Inc. $AVGO Holdings Lifted by Apollon Wealth Management LLC](https://longbridge.com/en/news/283103827.md) - [Philip Morris International Inc. 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