Wall Street Analyst: Broadcom’s Flat AI Guidance Justified the Selloff, but Nvidia Remains Best-in-Class Chip Play

Quick Read

• Vinh kept his Overweight on AVGO despite a 15% selloff, calling NVDA “hands down best-in-class” as its shares gained 2% Thursday.

• Google’s shift toward MediaTek custom silicon is eroding AVGO’s share, though KeyBanc’s deployment math implies fiscal 2027 AI revenue could hit $130B.

• The analyst who called NVIDIA in 2010 just named his top 10 stocks and Broadcom wasn’t one of them. Get them here FREE.

Broadcom held the line on its AI guidance for its upcoming third quarter on Wednesday night, but the stock still fell 15% on Thursday morning. That counterintuitive outcome sits at the center of KeyBanc Capital Markets analyst John Vinh’s reaction on CNBC’s Squawk Box, where he defended his Overweight rating on Broadcom (NASDAQ:AVGO) while reiterating that NVIDIA (NASDAQ:NVDA) remains the chip name to own.

Why Flat Guidance Tanked the Stock

Vinh’s first point: when a stock runs on a streak of beat-and-raise quarters, the unofficial bar moves well above the official guide. Broadcom’s Q2 was strong on the surface, with revenue of $22.187 billion (up 47.9% year over year) and AI semiconductor revenue of $10.80 billion, up 143% year over year. The Q3 AI guide called for $16.0 billion, over 200% YoY growth. But the full-year framing held steady.

As Vinh put it: “For Broadcom to come out and just reiterate its kind of AI outlook for not only fiscal 26, but also fiscal 27 of $100 billion. And not take it up is is probably not good enough. Just…