By Nauman Khan
Publication Date: 2025-12-18 17:50:00
This article first appeared on GuruFocus.
Broadcom (NASDAQ:AVGO) shares fell about 20% over the past five days, even after the chipmaker posted solid fiscal fourth-quarter results, as investors focused on the lack of a full-year artificial intelligence revenue outlook.
The pullback followed Broadcom’s recent earnings report, which showed continued strength in its AI-related semiconductor business. Still, the stock sold off as the market weighed uncertainty around longer-term AI demand visibility.
After meeting with Broadcom’s full management team, UBS analyst Timothy Arcuri said recent trading likely reflects an overreaction. He raised his estimates for fiscal 2026, projecting AI semiconductor revenue above $60 billion, nearly triple year-over-year growth.
Arcuri also lifted his fiscal 2027 forecasts, including revenue of $135 billion and earnings per share of $14.15. He pointed to a $73 billion AI backlog covering roughly 18 months, noting that shipments may…
