AVGO
New day, same AI fever dream
Broadcom popped nearly 1% in Tuesday premarket after Jefferies walked in like the friend who says, “No seriously, this one’s on discount.” The firm reiterated its Buy rating, kept the price target at $550, and argued the recent slide has created an attractive entry point.
Why Jefferies still likes the story
The bull case is still the same shiny AI cocktail: better visibility into future demand, a steadier roadmap for Broadcom’s custom chips, and a customer base that keeps getting bigger instead of smaller. Jefferies said Broadcom’s TPU 8i should enter production in the third quarter of 2026, and it also pointed to the long-term Google deal that runs through 2031.
That Alphabet tie-up matters because it gives Broadcom a giant, sticky customer with minimum revenue commitments — the kind of thing Wall Street loves to tape to the fridge. Jefferies also highlighted Broadcom’s OpenAI chip, which it says could be more power-efficient and cheaper than NVIDIA’s Blackwell platform.
The chart says: not exactly a straight line
The stock is still below its short-term moving averages, so traders are clearly not in a full-blown victory lap yet. But Broadcom remains above its longer-term trend lines, which is Wall Street’s version of saying, “the floor is wobbly, not missing.”
Big picture: Jefferies is betting the AI-chip party is still in the early innings, and Broadcom gets to keep showing up with both the hardware and the guest list.