TLDR
- Broadcom stock dropped 3.2% in pre-market trading to $350.48 on Monday, dragged down by a broad tech selloff.
- Tech executives calling for slower AI development triggered the wider semiconductor selloff.
- Broadcom’s Q4 revenue guidance of $34.8 billion missed the analyst consensus of $35.03 billion.
- Mizuho Securities reiterated a Buy rating with a $530 price target, implying 51% upside.
- Wall Street’s average 12-month price target sits at $519.21, with a Strong Buy consensus from 30 analysts.
Broadcom stock fell 3.2% in pre-market trading on Monday to $350.48, adding to a rough stretch that has seen the stock drop roughly 5% over the past 12 days.
The move came as prominent tech executives publicly called for a slower pace of AI development, sparking a selloff across semiconductor names. The broader market wasn’t helping either, with the Nasdaq off 1.8%, the S&P 500 down 0.8%, and the Dow lower by 0.3%.
Broadcom has been in a consolidation range since its September 2 earnings release, and Monday’s pre-market action looks like that range is testing its lower boundary.
The earnings report itself left investors with mixed feelings. Broadcom posted a Q4 revenue outlook of $34.8 billion, which came in just below Wall Street’s consensus estimate of $35.03 billion. The longer-range earnings outlook beat expectations, but the near-term guidance miss has kept sentiment cautious.
Analyst Sentiment Remains Divided
A TipRanks report published Monday flagged conflicting analyst views on the stock, adding to the uncertainty. At least one prominent research note has issued a Sell rating on AVGO, arguing that the stock’s valuation of around 30x forward non-GAAP earnings already prices in the bull case, leaving little room for error.
EU scrutiny of Broadcom’s VMware licensing overhaul has added another layer of regulatory noise that the market is still working through.
An upcoming ex-dividend date of September 21 with a $0.65 per share payout may also be prompting some positioning shifts among income-focused investors ahead of the event.
Mizuho Sees 51% Upside From Here
Not everyone is bearish. Mizuho Securities analyst Vijay Rakesh reiterated a Buy rating on September 12 and kept his 12-month price target at $530, implying roughly 51% upside from Monday’s pre-market price.
Rakesh’s bullish case centers on Broadcom’s accelerating AI semiconductor business. The company has secured multi-gigawatt XPU deployment commitments from Anthropic, OpenAI, Alphabet, and Meta.
Management has guided for $115 billion in AI revenue in fiscal 2027, rising to $230 billion in fiscal 2028. Those are big numbers that underpin the bull thesis.
Across 30 Wall Street analysts surveyed by TipRanks over the past three months, the average 12-month price target for AVGO stands at $519.21. The highest target is $630, and the lowest is $350. The consensus rating is Strong Buy.
AVGO is up around 4.59% year-to-date and carries a market cap of approximately $1.7 trillion. The stock sits roughly 19% below its all-time high of $495, a level many analysts are treating as a buying opportunity.
Peers including Nvidia, Marvell, AMD, and Qualcomm were also in focus with analysts this week, keeping the broader semiconductor sector in the spotlight.
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