** Brokerage HSBC upgrades chipmaker Broadcom AVGO.O to "buy" from "hold"; raises PT to $400 from $240

** Shares of AVGO rise 3.5% to $262.66

** New PT implies a ~52.9% upside to the stock's last close

** Brokerage sees better-than-expected potential in Broadcom’s ASIC (custom chip) business and says that it will significantly beat market expectations

** Broadcom’s ASIC revenues are forecast to grow strongly, as more AI spending shifts toward these custom chips-brokerage says

** Brokerage expects custom chip revenue for 2026 and 2027 to be much higher than current market estimates

** Earlier concerns about Broadcom losing wireless business from Apple and a slowdown at VMware are now less of a worry, as new data shows these risks are smaller than feared - HSBC

** Including session's moves, AVGO stock up ~13% YTD

(Reporting by Padmanabhan Ananthan)

((Padmanabhan.Ananthan@thomsonreuters.com))