Jordan Klein, TMT sector specialist at Mizuho Group, said Broadcom (AVGO) now offers an unusual opportunity for long-term investors, even as the stock has pulled back from its highs. Broadcom shares are down about 14% over the past month and nearly 30% from their peak. While the sell-off has raised concerns for some investors, Klein said it has created a “rare entry point,” calling Broadcom the “biggest winner” from the current wave of AI data-center investment.
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Valuation Is the Key Point
Klein’s main argument centers on valuation. After the pullback, he believes Broadcom’s stock price no longer reflects the scale of AI-driven demand the company is seeing from large cloud customers.
In a recent note, Klein said prices in the low $300s are “about as close to a gift as you’ll ever see,” assuming investors are willing to hold the stock over the long term.
Google’s Spending Supports the Case
A major part of Klein’s thesis comes from Alphabet (GOOGL). Google recently guided to roughly $180 billion in capital spending, and Klein estimates that around 60% of that budget will go toward servers.
Those servers require custom AI chips and networking equipment, and Broadcom plays a central role in both.
Rather than relying only on Nvidia’s (NVDA) GPUs, Google uses its own AI chips, known as TPUs. Broadcom helps produce these chips and supplies the networking hardware used inside Google’s data centers.
Demand Extends Beyond One Customer
Klein also noted that Broadcom’s AI exposure is no longer limited to Google. The company has started selling Google’s TPU rack systems to other AI customers, including Anthropic, showing that demand for this hardware is widening.
From Klein’s perspective, that growing customer base reduces risk and strengthens Broadcom’s long-term earnings power.
Is AVGO a Good Stock to Buy Now?
According to 30 analysts’ ratings, the answer is yes. Broadcom has a Strong Buy consensus view, with 29 analysts rating it a Buy, and one analyst rating it a Hold. The average AVGO stock price target is $475.75, implying a 47.42% upside from the current price.
