AVGO Stock Headed For $319B Market Cap Wipeout, But Analysts Eye Buying Opportunity

• Citi highlighted accelerating AI sales at Broadcom and said the company's long-term AI growth outlook remains increasingly visible through 2028.
• BofA stated that Broadcom's AI growth remains the key story, with revenue on track to grow roughly 180% in fiscal 2026 and nearly 100% in fiscal 2027.
• JPMorgan noted that Broadcom's second-quarter results reinforced its positive long-term growth outlook, with the AI buildout still in its early innings.

Broadcom Inc. (AVGO) is set for a $319 billion market-cap wipeout on Thursday after its decision not to raise AI revenue expectations for fiscal 2026 and 2027 disappointed investors.

Citi urged investors to buy the dip in AVGO stock following the post-earnings selloff, according to TheFly. The firm maintained its ‘Buy’ rating and $500 price target on Broadcom.

Broadcom shares were down more than 14% during Thursday’s pre-market trade. AVGO was the top trending ticker on Stocktwits at the time of writing.

Wall Street Remains Bullish On AVGO

Citi highlighted accelerating AI sales at Broadcom and said the company's long-term AI growth outlook remains increasingly visible through 2028.

BofA raised its price target on Broadcom to $530 from $450 while maintaining a ‘Buy’ rating. The firm stated that the key takeaway was not the modest second-quarter (Q2) earnings beat but Broadcom's AI growth trajectory, which remains on pace for roughly 180% growth in fiscal 2026 and nearly 100% growth in fiscal 2027.

The firm also highlighted a growing roster of custom AI chip customers, including Anthropic, Meta Platforms Inc. (META), OpenAI, and two additional accounts that are expected to ramp production in the coming quarters, complementing Broadcom's already strong business with Google's TPU platform.

JPMorgan raised its price target on Broadcom to $580 from $500 while reiterating an ‘Overweight’ rating. The firm said Broadcom's Q2 results left it increasingly optimistic about the company's growth prospects over the next several years, adding that the AI infrastructure buildout remains in its early stages.

JPMorgan continues to view Broadcom as its top pick in the semiconductor sector.

Jefferies raised its price target on Broadcom to $550 from $500 and maintained a ‘Buy’ rating. The firm called Q2 a mixed quarter, citing limited upside in guidance and fiscal 2027 AI commentary. Still, Jefferies expects margins to improve as AI revenue accelerates, with Meta and OpenAI expected to ramp next year.

Benchmark Says Investors Focused On Elevated AI Expectations

Benchmark raised its price target on Broadcom to $545 from $485 while maintaining a ‘Buy’ rating. The firm stated that investors judged Broadcom’s Q2 results against lofty expectations for AI semiconductor companies rather than published estimates.

The firm also cited concerns over Google's plans to diversify its TPU supplier base, though it said the shift toward MediaTek had already been widely anticipated by industry observers.

Broadcom reported earnings per share (EPS) of $2.44 on revenue of $22.19 billion, compared to Wall Street estimates of an EPS of $2.4 on revenue of $22.12 billion, according to Fiscal.ai data.

AVGO Provides Update On AI Chip Pipeline

Broadcom stated that Q2 bookings for AI semiconductors exceeded $30 billion and highlighted a growing pipeline of large-scale deployments with leading AI customers. The company added that it has already delivered chips to OpenAI and expects to deploy 1.3 gigawatts (GW) of compute capacity by 2027.

Broadcom also plans to deploy 3 GW of chips to Meta by the end of 2028, with deliveries tied to its initial 1 GW order, which is set to begin in the second half of 2027.

The firm also disclosed agreements with Apollo and Blackstone to deploy 20 GW of compute capacity through 2028, as well as a deal that will give Anthropic access to an additional 5 GW of next-generation TPU-based compute starting in 2027.

How Did Retail Traders React To AVGO?

Retail sentiment on Stocktwits around Broadcom trended in the ‘extremely bullish’ territory, with message volumes at ‘extremely high’ levels at the time of writing.

One bullish user called the selloff in Broadcom shares an overreaction, while adding that they believe it will go back up.

AVGO stock is up 38% year-to-date and 87% over the past 12 months. The S&P 500 ETF (SPY) is up 27% over the past 12 months, while the Invesco QQQ Trust ETF (QQQ) is up 41%.

The State Street Technology Select Sector SPDR ETF (XLK) is up 66% during this period, while the iShares Semiconductor ETF (SOXX) is up 188%.

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