Broadcom Inc. (NASDAQ:AVGO) is one of the top 10 picks from Harvard University’s stock portfolio. As of the end of Q1 2025, Harvard Management Co.’s portfolio indicates that the position in the stock has reduced by approximately 14% quarter-over-quarter.

On June 6, Jefferies analyst Blayne Curtis reiterated a Buy rating on Broadcom (NASDAQ:AVGO), with an unchanged price target of $300. His view is based on Broadcom’s steady progress in areas like AI and networking, where growth trends remain strong.

A technician soldering a semiconductor chip, emphasizing the power of the company's products.

According to Curtis, Broadcom’s AI business is expected to remain a key growth engine, supported by the scaling of its Ironwood TPU and broader ASIC portfolio. The firm sees a meaningful step-up in AI-related revenue over FY25 and FY26.

In networking, Ethernet adoption continues to grow across scale-out and scale-up use cases, further strengthening Broadcom’s position in the segment. This, combined with steady execution in the VMware integration, adds to the company’s long-term visibility. Jefferies highlights strong traction in VMware’s cloud platform (VCS), with a notable shift in customer adoption and a solid pace of double-digit ARR growth.

Although parts of the non-AI portfolio face some pressure, Broadcom’s overall fundamentals remain solid. The company continues to deliver strong gross and operating margins, underpinned by disciplined cost control and a diversified business mix.

Jefferies’ outlook suggests that Broadcom is well-positioned to benefit from secular trends in data infrastructure, and the current valuation continues to reflect attractive risk-reward in the analyst’s view.

While we acknowledge the potential of AVGO as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.