Analysts Lift Broadcom Targets to $550 as Shares Plunge 14% After Earnings
Updated
Updated · TradingView · Jun 3
Analysts Lift Broadcom Targets to $550 as Shares Plunge 14% After Earnings
3 articles · Updated · TradingView · Jun 3
Summary
Jefferies raised its Broadcom price target to $550 from $500 after earnings, while Wells Fargo and Susquehanna stood at $545 and $490 despite the stock's 14% post-results drop.
Broadcom's fiscal second quarter still showed revenue up 48% to $22.2 billion, AI semiconductor sales up 143% to $10.8 billion, and free cash flow above $10 billion.
The sell-off centered on what Broadcom did not deliver: Hock Tan reiterated — but did not raise — the company's 2027 AI revenue target of more than $100 billion and unveiled no new marquee customer.
Wall Street's read is that the decline reflects a valuation reset after a strong run-up, not a break in Broadcom's AI thesis; analysts broadly remain bullish, with no Sell ratings cited.
Is the market’s sharp sell-off a sign of deeper skepticism about the sustainability of the AI infrastructure boom or just short-term valuation anxiety?
With massive AI order backlogs but rising financing risks and infrastructure bottlenecks, could Broadcom’s growth be derailed by factors outside its control?
How will Broadcom’s shift to subscription-only VMware offerings and aggressive pricing affect its long-term relationships with enterprise customers?