AVGO
The Google drama? Apparently not that dramatic
Broadcom is heading into earnings on Sept. 2, and JPMorgan is basically telling the market to unclench. Analyst Harlan Sur said investor fears that Alphabet could eventually lean away from Broadcom are "overstated," and he kept an Overweight rating with a $580 price target.
That matters because AVGO has been treated like a stock that needs to prove the AI story is still alive and well. The shares are up only 7% this year, which is not exactly the kind of performance that gets you invited to the cool table when semis are ripping. But JPMorgan argues the street is making too much of the Google situation and too little of Broadcom’s actual position in AI infrastructure.
Why the market cares
Here’s the spicy part: the note says recent Alphabet and Marvell chatter is more about Google adding partners around its internal chip efforts than Broadcom getting pushed out of the picture.
In plain English:
- Alphabet may be building a bigger supplier bench, but that does not automatically mean Broadcom loses the starting job.
- JPMorgan says the April agreement still anchors AVGO as the volume partner for the next four generations of TPU chips.
- The bank expects solid July-quarter results and better-than-expected October-quarter guidance.
The bigger AI subplot
JPMorgan also thinks Broadcom’s AI numbers could keep scaling fast, with fiscal 2026 AI revenue topping $56 billion and fiscal 2027 potentially blowing past management’s "over $100 billion" guide.
That’s the kind of forecast that turns a chip company into a full-on AI tollbooth. If Broadcom backs that up on Sept. 2, the stock probably gets rewarded for more than just beating estimates — it gets rewarded for reminding everyone it still owns a very expensive piece of the AI plumbing.
Big picture: this is less "Broadcom in trouble" and more "Broadcom’s AI cash machine might be even louder than the market thinks."