Broadcom Inc. has received a significant vote of confidence from Wall Street as trading for the new week commences. Analysts at Wolfe Research have upgraded the semiconductor specialist to an “Outperform” rating, attaching a price target of $400 per share. The rationale extends beyond near-term operations, centering instead on the company’s strategic positioning as a critical supplier within the booming artificial intelligence infrastructure sector.
Institutional Holdings Reflect Strong Conviction
Support for the stock is not limited to analyst commentary. Recent regulatory filings reveal that major institutional investors have been actively increasing their stakes. This activity underscores professional market participants’ sustained interest.
Notable adjustments include:
* Vanguard Personalized Indexing Management: Expanded its holding to over 773,000 shares, valued at approximately $255.7 million.
* Ewa LLC: Increased its position by 23.8%, bringing its total to 9,310 shares.
* Cabot Wealth Management: Boosted its stake to 9,624 shares.
As of February 1, 2026, institutional investors collectively hold about 76.43% of Broadcom’s outstanding shares—a substantial level typical of deep professional engagement.
Custom AI Chip Partnership with Google Fuels Optimism
The core of Wolfe Research’s upgrade lies in Broadcom’s expanding role in AI, specifically through its custom silicon partnership with Alphabet’s Google. The collaboration focuses on Google’s Tensor Processing Units (TPUs), specialized chips designed to accelerate artificial intelligence workloads.
Should investors sell immediately? Or is it worth buying Broadcom?
Analyst Chris Caso at Wolfe identifies a clear growth trajectory, projecting that Broadcom could deliver roughly 7 million TPU units by 2028. This outlook reinforces the thesis that the company is successfully evolving from a traditional networking hardware provider into a pivotal player within the AI infrastructure supply chain. The “AI infrastructure” narrative remains a fundamental anchor for technology investors.
Market Performance and Price Target Context
The newly established $400 price target implies an approximate upside of 20% from the stock’s most recent closing level. This bullish call stands out against recent sector weakness. While the Philadelphia Semiconductor Index faced notable pressure, declining 3.9% over a comparable period, Broadcom’s shares demonstrated relative stability.
Providing context with recent price data: Broadcom closed Friday’s session at $330.11. This places the stock approximately 6.9% below its 52-week high.
Upcoming Catalysts: Economic Data and Earnings
In the near term, the U.S. employment report scheduled for February 6 may set the tone for technology valuations. Markets, particularly for AI and infrastructure stocks, often react sensitively to signals regarding interest rates and inflation.
The company-specific spotlight will return around March 5, 2026, when Broadcom is anticipated to release its next quarterly results. The previous quarter’s performance provides a foundation for current optimism: for Q4, the company reported revenue of $18.02 billion, a year-over-year increase of 28.2%, and earnings per share of $1.95. This combination of robust operational growth and AI-driven potential forms the basis upon which Wolfe Research constructs its $400 scenario.
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