Broadcom Stocks Rise 4.1% as Power Bottleneck Leaves Forecasts Intact

Broadcom, the custom AI-chip, networking and infrastructure-software company AVGO, received backing from Morgan Stanley’s assessment that electricity shortages should leave its 2027 forecasts intact, according to Reuters. Shares stood at $377.40 at 10.45am ET on October 6, 2026. The valuation graphic puts the stock 10.2% below its $420.29 GF Value estimatea valuation cushion, though no guarantee of upside.

The growth engine is already doing heavy lifting. Broadcom reported $16.7 billion in third-quarter AI semiconductor revenue, up 221% from a year earlier and roughly 56% of total sales. Management expects $21.7 billion in the fourth quarter. That makes delivery timing a major earnings variable: even a temporary delay could move substantial revenue between quarters.

Building custom accelerators around customers’ data-center plans can give Broadcom clearer deployment visibility. But a well-planned chip still needs a powered facility. Investors should watch whether electricity…