AVGO
The dip that’s got analysts whispering “buy?”
Broadcom has taken a decent-sized haircut lately, sliding about 28% in three months from a high near $494 to $357. But Wall Street isn’t exactly waving a white flag. If anything, the analyst crowd seems to be treating the selloff like a clearance sale.
What the bulls are saying
Piper Sandler kicked things off with a fresh Overweight rating and a $460 price target. Citigroup’s Atif Malik also nudged his target higher, from $500 to $515, while other bulls are still stacking up targets from Evercore ISI, Raymond James, Truist, and Morgan Stanley.
That leaves the average target around $478, which is a polite way of saying analysts think the stock may have overshot to the downside. Not exactly a rousing marching band, but definitely not a funeral either.
Why investors still care
The bull case is basically: Broadcom’s revenue growth is still cooking, AI demand is still chunky, and customer orders haven’t fallen off a cliff. The article says second-quarter revenue rose 48% to $22.1 billion, while AI semiconductor revenue jumped 143% to $10.8 billion.
There’s also the larger AI-spending backdrop. Gartner is forecasting AI spending to hit $2.7 trillion this year and $3.63 trillion next year, which is a big neon sign for chip vendors. If that spending wave keeps rolling, Broadcom’s ASIC business could keep riding shotgun.
The setup from here
Technically, the stock is sitting near the lower end of an ascending channel and bumping against key moving averages. In plain English: the trend is bruised, but not broken.
- Bulls point to higher highs, higher lows, and solid order flow
- Bears point to the sharp drop and the valuation reset
- Everyone points to AI because, well, AI is doing the heavy lifting for half the market
Big picture: this isn’t a “Broadcom is fixed” story — it’s a “Wall Street still thinks the business is better than the stock price says” story.