Envision Research upgraded Broadcom’s stock to a ‘buy’ rating. The investment research firm cited a compelling valuation following a price pullback after the company’s recent earnings report.
Envision highlighted several positive catalysts supporting the upgrade. Broadcom currently boasts a $73 billion backlog in AI-related orders. Furthermore, the company secured a fifth major XPU customer. This new customer placed a $1 billion order scheduled for delivery in late 2026.
The analysis suggests the market overemphasized negative aspects from the earnings report. This included a backlog figure that some investors hoped would be higher. Envision argues this negative sentiment has created an attractive entry point for investors.
The upgrade comes as major banks have also named Broadcom a top semiconductor pick for 2026.