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Wall Street’s latest Broadcom crush
Broadcom is heading into earnings with a fresh vote of confidence from Citi, and this one comes with a bigger number attached. Analyst Atif Malik lifted his price target from $475 to $500 on May 12th, kept the stock at Buy, and dubbed Broadcom his top semiconductor pick for 2026. Not exactly subtle.
For investors, the timing matters. Broadcom reports fiscal Q2 results on June 3rd, and Citi is basically saying the AI gravy train still has gas in the tank. That’s notable because the stock has already gone from "hot AI name" to "how is this thing even this expensive?" territory.
The AI case is doing the heavy lifting
The bullish thesis is pretty straightforward: Broadcom has become one of the core plumbing providers for AI. It’s not trying to be Nvidia’s twin; it works with hyperscalers on custom silicon and networking gear, which means long relationships, sticky designs, and a lot less customer churn than your average chip shop.
The company also has a software cushion from VMware, which helps smooth out the ride when chip sentiment gets bumpy. Citi is betting that combination — AI exposure plus recurring software revenue — keeps earnings power strong even with expectations already sky-high.
Why this still isn’t a free pass
Here’s the catch: when a stock is already floating near a $2 trillion valuation, the margin for error is basically a postcard. Broadcom can absolutely keep winning and still disappoint if the numbers or guidance don’t wow the market.
So yes, Citi is cheering from the cheap seats. But the real test arrives on June 3, when Broadcom has to prove the AI story is still accelerating, not just beautifully priced in. Big picture: the Street still loves Broadcom, but now the company has to outrun its own hype.