Despite Hype, Broadcom Keeps Edging Sideways and Down: This Wall Street Analyst Says It Will Provide 75% Returns Soon

Quick Read

• Broadcom (AVGO) trades at $340, a 57% discount to the consensus target, despite posting nine straight EPS beats and guiding Q4 AI revenue up 236% year-on-year.

• Rosenblatt raised its AVGO target to $600, implying 77% upside, anchored by an 18x multiple on FY2028 EPS management says will exceed $30.

• AVGO is the only AI chip peer where the price target gap has widened as the share price fell, with NVDA up 15% and MRVL up 171% YTD by comparison.

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Broadcom (NASDAQ:AVGO) currently trades at $339.51, well below the average Wall Street 12-month price target of $531.85, a gap that implies roughly 57% upside from here.

Broadcom is now the second-largest US semiconductor company by market capitalization at roughly $1.62 trillion, sitting behind only NVIDIA. Its role in the AI buildout has shifted from "one of many" to the custom silicon partner of choice for hyperscalers like Google, Meta, OpenAI, and Anthropic. That is why the disconnect between the fundamentals and the share price has drawn analyst attention.

The setup is unusual. Broadcom just posted its ninth consecutive EPS beat and guided Q4 AI semiconductor revenue to $21.7 billion, up 236% year-on-year. And the stock keeps drifting the wrong way.

Why AVGO Keeps Grinding Lower Despite Blowout Numbers

The headline damage is the one-month move, with the stock down 13.49% against a Q4 revenue guide of roughly $34.8 billion, up 93% year-on-year. The pullback accelerated after CNBC reported Anthropic had pushed Broadcom to slow the pace of AI capacity deployment. Broadcom's chief executive publicly said the underlying AI revenue targets have not changed.

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The bigger issue is positioning. AVGO ran to roughly $495 at its Q2 filing before sliding to $371.27 at the Q3 release, and it has given back more ground since. Investors are questioning whether the fiscal 2028 AI outlook of $230 billion reflects secured supply more than secured demand, and whether concentration among a handful of hyperscaler customers is a strength or a single point of failure.