Chip stocks surged Monday, led by Broadcom (AVGO) and Advanced Micro Devices (AMD) following bullish calls from analysts anticipating gains driven by growing demand for artificial intelligence (AI).
Shares of Broadcom added 5.5%, leading gains on the S&P 500 after UBS analysts lifted their AI revenue estimates for the company in fiscal 2026 and 2027 by 20% and 40%, respectively. The analysts maintained a “buy” rating for the stock and raised their price target to $270 from $220, implying a 16% premium from Monday’s closing price of $232.35.
UBS is not the only firm bullish on Broadcom, with all of the 14 analysts polled by Visible Alpha holding a “buy” or equivalent rating for the stock. However, their average price target is a bit lower at $249, suggesting 7% upside. Broadcom shares have already more than doubled in value this year.
Meanwhile, AMD shares jumped 4.5% to $124.60 Monday after analysts at Rosenblatt called it a “top pick” for the …