Broadcom Stocks Drop as Its Google-Infrastructure Thesis Faces a Revenue Test

Broadcom, the semiconductor and infrastructure-software supplier AVGO, traded at $354.03 at 11.15am EST, down about 0.2%, on October 13. The AI spending story remains the draw. According to MarketWatch, Melius Research’s October 12 supplier assessment highlighted Broadcom’s exposure to Google’s investment push. Its existing $610 price target sets a bullish expectation. Delivering the earnings to support it is the harder part.

The next checkpoint is already on the board. Broadcom reported $16.7 billion in third-quarter AI semiconductor revenue in its September 2 earnings release and forecast $21.7 billion for the fourth quarter. That calls for roughly 30% growth in one quarter. Investors have a concrete number to test: whether custom AI chips and networking demand translate into another $5 billion of quarterly revenue.

The chart puts the shares 16.83% below the $425.68 GF Value estimate, suggesting a valuation cushion if Broadcom delivers. That estimate is no guarantee, and neither is…