Wells Fargo upgraded Broadcom (AVGO), Analog Devices (ADI) and Monolithic Power Systems (MPWR) to Overweight from Equal-weight.
Shares of these three were up 2.6%, 1.5% and 4%, respectively, during early market action on Thursday.
The financial firm edged up Broadcom’s price target to $430 from $410.
“We think the recent pull-back in shares of Broadcom, coupled with increasing confidence in potentially meaningful incremental catalysts looking through 2026, gives us the opportunity to get constructive,” said Wells Fargo analysts, led by Aaron Rakers, in an in-depth investor report on Thursday.
They highlighted Broadcom’s key partnership with Google (GOOG)(GOOGL) in developing its tensor processing units.
“In addition to Broadcom’s announcement that Anthropic (ANTHRO) has ordered $21B in Google TPUs + rack-scale systems, we think indications of potential Google TPU deployments with Meta (META), xAI (X.AI), Apple (AAPL), SSI, and others would be potentially meaningful incremental upside catalysts,” Rakers noted.
Meanwhile, Wells Fargo hiked its price target on Analog Devices to $340 from $265.
“With ADI continuing to report positive bookings activity across key growth end markets and signs of a broad market recovery, we expect the company to deliver modest upside to consensus estimates that currently reflect relatively seasonal growth throughout F2026,” Rakers said.
Analog Devices reported 40% year-over-year growth during 2025 in its automated test equipment segment. Momentum is expected to continue in 2026 due to leading edge logic and high-bandwidth memory demand.
Finally, the bank inched up Monolithic Power’s price target to $1,125 from $1,100.
“Following a reset year in 2025 as NVIDIA (NVDA) expanded its supplier ecosystem, we expect MPWR to deliver accelerating growth in its Enterprise data segment,” Rakers noted. “While we model revenue +39% y/y in 2026, we will be focused on upside drivers as demand visibility improves throughout the year.”