Broadcom stock is struggling for direction Tuesday after the chipmaker fell sharply Monday following the release of DeepSeek, a cheap AI chatbot.

Broadcom stock sold off on Monday following DeepSeek's release. Read why I think AVGO represents a solid short-term and long-term Buy.

The lowest price target is $160; the highest is at $265. Analysts previously projected its addressable market for AI chips to reach $60–90 billion by 2027, with Broadcom potentially capturing $37.5–50 billion if it maintained its market share. All those numbers are in muddy water now.

DeepSeek’s more efficient approach challenges the conventional wisdom that bigger and more expensive necessarily means better in AI development. The Chinese AI lab DeepSeek recently made waves by releasing their DeepSeek-R1 model as open-source software.

Broadcom Inc.'s strong stock gains, dividend growth, and strategic acquisitions make it a long-term investment opportunity. Learn more on AVGO stock here.