After ending yesterday's market session about 3% lower from where they were at the close of trading on Wednesday, Broadcom (AVGO +3.79%) stock is heading higher today, poised to end the week on a positive note.
As of 2:28 p.m. ET, shares of the semiconductor specialist are up 4.1%.
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One analyst believes that Broadcom stock has plenty of room to run in 2026
Maintain an outperform rating, Vijay Rakesh, an analyst at Mizuho, lifted the price target on Broadcom stock to $480 from $450.
NASDAQ: AVGO
Key Data Points
According to theFly.com, Rakesh based his more optimistic outlook on Broadcom stock after the firm revisited its price targets on semiconductor stocks, believing that many of them have "attractive valuations." Providing an even more ringing endorsement of Broadcom stock, Mizuho named Broadcom as one of its top semiconductor picks for 2026.
Is it too late now to pick up shares of Broadcom?
While Rakesh sees significant upside to Broadcom stock, investors should hardly take this data point in isolation. Those considering a position in the semiconductor stock should also recognize that shares are trading at a premium to their historical valuation. Currently, Broadcom stock is changing hands at a price-to-earnings ratio of 69.7, a lofty valuation considering its five-year average trailing P/E of 40.2. For those committed to a Broadcom investment, the stock's rich valuation may be less of a concern. Still, those interested in a semiconductor stock that offers a value opportunity will want to look elsewhere.
