Citi's 2026 Semiconductor Forecast: MCHP as Top Choice, with AVGO, ADI, MU, NXPI, and TXN Rated as Buys
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 23 2025
0mins
Should l Buy AVGO?
Source: SeekingAlpha
AI Supercycle Outlook: Citi Research predicts the AI supercycle will last until 2026 but warns of increasing volatility and risks as costs related to OpenAI emerge and debt concerns grow.
Top Stock Picks: The brokerage favors NVIDIA, Broadcom, and Micron Technology within the AI ecosystem, with Microchip Technology identified as the top pick due to its potential for significant upside.
Earnings Projections: Citi expects substantial earnings growth for Microchip Technology and Texas Instruments, projecting MCHP EPS to rise over fourfold by 2027 and TXN EPS to increase by 77% in the same timeframe.
Preference for Synopsys: Citi prefers Synopsys over Cadence Design Systems, anticipating better operating margin expansion for Synopsys due to cost-cutting measures and a favorable software mix.
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Analyst Views on AVGO
Wall Street analysts forecast AVGO stock price to rise
30 Analyst Rating
29 Buy
1 Hold
0 Sell
Strong Buy
Current: 318.820
Low
370.00
Averages
457.75
High
525.00
Current: 318.820
Low
370.00
Averages
457.75
High
525.00
About AVGO
Broadcom Inc. is a global technology firm that designs, develops, and supplies a range of semiconductors, enterprise software and security solutions. The Company operates through two segments: semiconductor solutions and infrastructure software. Its semiconductor solutions segment includes all of its product lines and intellectual property (IP) licensing. It provides a variety of radio frequency semiconductor devices, wireless connectivity solutions, custom touch controllers, and inductive charging solutions for mobile applications. Its infrastructure software segment includes its private and hybrid cloud, application development and delivery, software-defined edge, application networking and security, mainframe, distributed and cybersecurity solutions, and its FC SAN business. It provides a portfolio of software solutions that enable customers to plan, develop, automate, manage and secure applications across mainframe, distributed, mobile and cloud platforms.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Stock Price Surge: In after-hours trading, Ross Stores' shares rose 6.3% to $210.16, indicating a positive market reaction to its earnings report, potentially driving short-term investment enthusiasm.
- Industry Impact: The strong performance of Ross Stores may positively influence the broader retail sector, especially amid increasing economic uncertainty, encouraging other retailers and enhancing overall market sentiment.
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- Stock Market Decline: U.S. stocks closed lower on Tuesday, with the Dow Jones dropping over 400 points to 48,501.27, as escalating tensions between the U.S., Israel, and Iran severely impacted investor confidence.
- Economic Data Fluctuations: The Logistics Manager’s Index improved to 61.5 in February from 59.6, yet the RealClearMarkets/TIPP Economic Optimism Index fell to 47.5 in March, missing the expected 50.1, highlighting economic outlook uncertainties.
- Sector-Wide Losses: All sectors of the S&P 500 closed negatively on Tuesday, with materials, industrials, and healthcare stocks experiencing the largest losses, reflecting growing concerns about the future economic landscape.
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- Geopolitical Concerns: While President Trump's comments provided some relief, ongoing tensions between the U.S. and Iran continue to unsettle investors, contributing to a bearish market sentiment and increased volatility.
- Rising Oil Prices: Global benchmark Brent crude surged 5.8% on Tuesday to $82.14 per barrel, the highest since July 2024, having jumped nearly 20% in just two sessions, which could impact inflation and economic growth expectations.
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Market Sentiment: Despite the positive earnings outlook, shareholders should brace for a potentially muted reaction in the stock market as overall sentiment remains uncertain.
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- Global Market Opportunity: Tripo AI reports that around 90% of its users are from outside China, indicating strong demand in the global market, which is expected to drive future revenue growth for the company.
- Rapid Revenue Growth: Since launching its 3D model generation platform in June 2025, Tripo has quickly surpassed $1 million in monthly revenue, demonstrating the success of its products in international markets.
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