Broadcom Inc. (NASDAQ:AVGO) is drawing growing analyst support as artificial intelligence adoption accelerates, and hyperscaler spending tightens supply chains.



Broadcom continues to see rising demand for its chips as artificial intelligence adoption accelerates, TD Cowen analysts said after meeting with the company.



Analysts led by Joshua Buchalter reaffirmed a Buy rating and a $450 price forecast on Broadcom shares.



<h2>Hyperscalers, Memory Tightness And Custom Silicon Tailwinds</h2>



Analysts are turning more constructive on Broadcom and its peers as hyperscaler demand tightens the memory supply.



After an Asia trip, KeyBanc analyst John Vinh said hyperscalers are locking in DRAM and NAND capacity ahead of expected 50% data center bit growth in 2026, driving sharp increases in contract pricing.



Vinh maintained positive views on AI and infrastructure-linked names such as Nvidia Corp. (NASDAQ:NVDA), Broadcom Inc. (NASDAQ:AVGO), Marvell Technology Inc. (NASDAQ:MRVL), and others.



Within custom silicon, Vinh highlighted Broadcom as a key beneficiary, noting that its Chip-on-Wafer-on-Substrate supply outlook for 2026 rose sharply as Tensor Processing Unit programs scale.



He said a delayed OpenAI custom Application-Specific Integrated Circuit still represents a large long-term opportunity that could meaningfully expand Broadcom's AI backlog.



<h2>Analysts See AI Boom Intact, But Valuations Matter</h2>



RBC Capital Markets also said the AI cycle still has room to run despite investor debates.



Analyst Srini Pajjuri said hyperscalers are likely to sustain elevated capital spending for the next 18 to 24 months.



Pajjuri said GPUs remain central to AI investment, with Nvidia's dominance largely intact despite growing competition from custom chips.



He expects hyperscaler spending to sustain Nvidia's demand visibility, while noting its valuation already factors in some slowdown risk.



He sees Advanced Micro Devices, Inc. (NASDAQ:AMD) as a viable second GPU supplier after its OpenAI deal, but believes much of the near-term upside is already priced in.



For Broadcom, he highlighted momentum in custom accelerators but raised concerns over customer sustainability, valuation, and margin pressure.



AVGO Price Action: Broadcom shares were up 1.81% at $334.75 during premarket trading on Thursday, according to Benzinga Pro data.



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Broadcom (AVGO) is gaining analyst support due to rising AI demand and supply chain constraints. Analysts reaffirmed a Buy rating and a $450 price target, highlighting Broadcom's position as a key beneficiary in custom silicon. The AI infrastructure boom is expected to sustain elevated capital spending from hyperscalers for the next 18 to 24 months, although concerns about valuation and margin pressure remain. Broadcom shares rose 1.81% to $334.75 in premarket trading.

Analysts Double Down On Broadcom As AI Infrastructure Boom Accelerates