In the fast-evolving world of artificial intelligence, Broadcom Inc. has emerged as a pivotal player, drawing fresh endorsements from Wall Street analysts amid surging demand for AI infrastructure. Ben Reitzes, head of technology research at Melius Research, recently highlighted Broadcom (NASDAQ:AVGO) as a top pick during a CNBC appearance, tying its potential to the explosive growth in AI applications like OpenAI’s Sora video generation model. This recommendation comes as the broader AI market is projected to reach $2 trillion, fueled by advancements in generative technologies that require robust semiconductor support.

Reitzes emphasized Broadcom’s strength in custom silicon, positioning the company to capitalize on the next wave of AI deployments. With federal rate cuts creating a favorable environment for tech investments, Broadcom stands out among AI stocks, according to a report from Yahoo Finance, which detailed how the company’s chips are integral to scaling AI models that consume vast computational resources.

Broadcom’s AI Partnerships Signal Massive Upside

A key driver of this optimism is Broadcom’s deepening ties with AI leaders. OpenAI, the maker of ChatGPT and Sora, has inked a deal with Broadcom to develop 10 gigawatts of custom AI chips, as reported by CNN Business. This partnership underscores the immense power demands of modern AI, equivalent to the electricity needs of a large city, and positions Broadcom at the heart of infrastructure buildouts.

The collaboration follows Broadcom’s announcement of a mysterious $10 billion AI chip order from a new customer, which sent shares surging 15%, per Reuters. Industry insiders note that such deals validate CEO Hock Tan’s strategy to pivot toward AI-specific semiconductors, with revenue from this segment already showing double-digit growth in recent quarters.

Wall Street’s Bullish Stance on Valuation and Growth

Analysts like Reitzes argue that Broadcom’s valuation remains attractive despite its rally, with forward earnings multiples suggesting room for expansion as AI adoption accelerates. In a piece from Insider Monkey, Reitzes pointed to Broadcom’s role in enabling AI inference and training, critical for tools like Sora that generate realistic videos from text prompts.

This bullish outlook is echoed by other experts, including Stacy Rasgon of Bernstein, who dismissed short-term sustainability concerns for AI stocks in a CNBC discussion reprinted by Insider Monkey. Broadcom’s recent earnings, released on September 4, 2025, revealed strong AI-driven revenue, bolstering confidence in its path to potentially joining the $2 trillion club alongside peers like Nvidia.

Strategic Moves and Executive Confidence

Broadcom’s leadership has tied executive compensation to ambitious AI targets, including a $120 billion revenue goal, as outlined in a Yahoo Finance article. This incentive structure has propelled shares higher, with a 10% jump following the announcement, signaling internal conviction in sustained growth.

For industry veterans, Broadcom’s edge lies in its custom ASIC expertise, which differentiates it from general-purpose chipmakers. Mizuho analyst Vijay Rakesh, in a TipRanks report, dubbed Broadcom the “king of AI custom silicon,” forecasting a $410 price target amid meetings with management.

Future Implications for AI Infrastructure

As AI agents and models like Sora evolve, the demand for efficient, power-hungry chips will only intensify. Broadcom’s partnerships and innovations position it to capture a significant share of the $2 trillion market, analysts say. However, challenges remain, including supply chain constraints and geopolitical tensions affecting semiconductor production.

Ultimately, for insiders tracking tech’s AI surge, Broadcom represents a compelling bet on the infrastructure underpinning tomorrow’s intelligent systems, with Wall Street’s endorsements providing a roadmap for potential outsized returns.