AI business has a strong long-term growth trend + diversified business models! Morgan Stanley reiterates Broadcom (AVGO.US) as the top choice for semiconductor stocks.

According to the Zhitong Finance and Economics APP, Morgan Stanley released a research report stating that Broadcom (AVGO.US) remains the top investment target in the semiconductor sector for the bank. This is due to its diversified business model, top-notch profit margins, and strong long-term growth trends in artificial intelligence (AI)/data centers and infrastructure. The bank reiterated its "overweight" rating on Broadcom with a target price of $400 by December 2026. This target price represents a potential increase of about 16% from Broadcom's closing price of $346.17 on Wednesday.