Broadcom Rebounds as Wall Street Sees 25% AI Upside

This article first appeared on GuruFocus.

Broadcom (NASDAQ:AVGO), the custom-chip and infrastructure-software powerhouse, popped approximately 1.0% to $367.75 Friday morning as buyers stormed back after the Google-fueled selloff. Wall Street is not ready to bury this AI winner. Barron’s flagged a bullish path toward roughly 25% upside as hyperscalers pour billions into custom accelerators and the networking muscle required to connect them.

Yes, Google added Marvell. No, Broadcom’s business did not disappear overnight. These chip programs take years to design, test and deploy, giving Broadcom’s deep engineering ties real staying power. Its fiscal second-quarter AI semiconductor revenue rocketed 143% to $10.8 billion, nearly half of total revenue. Google matters, but Meta and other hyperscalers give Broadcom more than one shot at the AI jackpot.

The real battle…