By @proactive_x
Publication Date: 2026-06-05 13:10:00
Goldman Sachs has told clients to be aggressive buyers of Broadcom Inc (NASDAQ:AVGO, XETRA:1YD) on any share price weakness following the US chipmaker’s second-quarter results.
In doing so, it argued that the modest near-term disappointment relative to elevated expectations masks an exceptionally strong medium-term AI revenue trajectory.
The bank maintained its buy rating on Broadcom (Nasdaq: AVGO) and raised its 12-month price target to $525 from $500, applying an unchanged multiple of 30 times its normalised earnings per share estimate of $17.50, which it lifted from $17.00.
Broadcom reported second-quarter revenue of $22.2 billion, in line with both Goldman’s estimate and the Wall Street consensus. AI semiconductor revenue grew 143% year on year to $10.8 billion. Gross margin of 77.1% and operating margin of 67.3% were both broadly in line with or ahead of expectations.
The near-term friction comes from third-quarter AI semiconductor guidance of $16.0 billion, which fell…