Leading Wall Street analysts have issued bullish reports on the artificial intelligence (AI) infrastructure sector, arguing that demand shows no signs of slowing and highlighting specific companies as prime investment opportunities. Bernstein analyst Stacy Rasgon published a note calling the valuation for Broadcom (AVGO) "absurdly attractive" and rating the stock "outperform." He pointed to the company's most recent quarterly results, which showed a 16% rise in sales and a 173% jump in profits, as evidence of strong underlying demand.
Rasgon projects Broadcom's earnings per share could reach $20 or more by fiscal year 2027, a significant increase from the $5.12 per share earned over the past twelve months. He made a similar positive call on Nvidia (NVDA). Following the note, Broadcom's stock jumped 4.7% on Monday, trading around $321.15.
Other firms reinforced this view. Cantor Fitzgerald maintained its Overweight rating on Broadcom with a $525 price target, citing management comments that networking could account for up to 40% of total AI revenues. The firm also raised its EPS estimates for 2027 to $23–$25. Rosenblatt Securities lifted its price target to $500, keeping a Buy rating.
The optimism extended to the semiconductor equipment sector, with ASML Holding (ASML) jumping over 5%. While Rasgon's note did not name ASML directly, investors connected the company to the AI demand thesis, as increased chip production requires more of ASML's advanced lithography machines.
Separately, Bank of America analyst Didier Scemama published a note after investor meetings in Asia, keeping a Buy rating and a €1,598 price target on ASML. BofA sees ASML as a "prime beneficiary" of broader EUV adoption and rising memory capital expenditure, with the memory cycle likely to remain strong through at least the first half of 2027. The bank also suggested its current revenue estimate of €52 billion for 2028 may be conservative and expects ASML to potentially raise its long-term guidance later this year.
