RBC Capital initiated coverage on Broadcom Inc. on January 15, 2026. The firm assigned a "Sector Perform" rating and set a price target of $370.00.
This neutral rating contrasts sharply with the broader consensus. Several major banks recently named Broadcom a "top pick" for 2026, with some bullish outlooks featuring price targets as high as $510.
The initiation follows a period of stock volatility after the shares pulled back from all-time highs. Broadcom boasts a strong position in the AI semiconductor space, which drives positive sentiment. However, investors also cite concerns over a slight compression in gross margins and recent insider selling. Institutional investor sentiment remains mixed, with some firms increasing stakes while others trim positions.