By Jeff Kilburg
Publication Date: 2026-08-21 15:27:00
Broadcom sits roughly 50% below its average Wall Street price target while the AI infrastructure build-out continues to accelerate. At roughly $370, the stock is well below the consensus target (per analysts) in the low-to-mid $500s (strong buy rating across the Street). I believe this is one of the cleaner dislocations in the semiconductor complex right now. The market has been treating AVGO as a pure networking name and not necessarily as the dual-engine it is which also plays in the semiconductor arena. AI semiconductor revenue hit $10.8 billion in the most recent quarter (+143% year-over-year). Management guided $16 billion for the current quarter and reaffirmed $56 billion for the full fiscal year, with line-of-sight to more than $100 billion in AI semiconductor revenue in fiscal 2027. Roughly 40% of Broadcom recent AI revenue came from networking (Tomahawk switches and related silicon), and the rest from custom XPUs/TPUs for hyperscalers and frontier labs including Google,…