Broadcom Plunges, Goldman Says Buy

Broadcom Inc. (NASDAQ: AVGO) shares fell roughly 15% in Thursday premarket trading after the company delivered record quarterly results but gave AI guidance that came in below Wall Street’s elevated expectations. Broadcom reported fiscal second-quarter revenue of $22.2 billion, above the $22.1 billion consensus estimate. Adjusted earnings came in at $2.44 per share, topping expectations of $2.39. AI semiconductor revenue surged 143% year-over-year to $10.8 billion. The pressure came from guidance. Broadcom guided third-quarter AI semiconductor revenue to $16.0 billion, below the Street estimate of $16.4 billion. CEO Hock Tan also declined to raise the full-year AI target, reiterating fiscal 2027 AI revenue “in excess of $100 billion.” Goldman Sachs analyst James Schneider reiterated a Buy rating and raised his 12-month price target from $500 to $525, implying nearly 30% upside from Thursday’s premarket level near $408. Goldman also kept Broadcom on its Conviction List and said it would be an aggressive buyer after the pullback. Goldman’s bullish case centers on Broadcom’s custom silicon growth, AI networking demand, secured component supply through fiscal 2027, and major hyperscaler customers including Google, Meta, Anthropic, and OpenAI. Disclaimer: Video contains AI generated content. #Broadcom #AIStocks #AVGO --- 🖥️ Try Benzinga Pro FREE with a 14 day trial: https://www.benzinga.com/pro/register 📈 Take your trading to the next level with our suite of premium research services and tools: https://www.benzinga.com/services 🌐 Find more market-moving insights at https://www.benzinga.com — your one-stop destination for the latest financial news, data, and expert analysis to stay ahead of the markets. 📲 Follow us on socials @benzinga ------------------------------------------------------------------------------------ 🔹Free Benzinga Webinars: https://www.youtube.com/watch?v=LQ2jOJNkDfI&list=PL4k0fH8EgI3YTdqniRmxrvz97w3IQ61rD 🔹Benzinga Pro Tutorials: https://www.youtube.com/watch?v=a2FaHhLIrks&list=PL4k0fH8EgI3YMwoBMFXGvVMkgixFymmei&pp=gAQB 🔹Earnings Calls: https://www.youtube.com/watch?v=C2-AoCw64Ok&list=PL4k0fH8EgI3buZI5529R53wJUNd9NS4_s 🔹Premarket Playbook: https://www.youtube.com/playlist?list=PL4k0fH8EgI3ZVRPM7INpG--GvohnBVTnT 🔹Benzinga's All Access: https://www.youtube.com/playlist?list=PL4k0fH8EgI3bQSn91atO-3lPT4V6Nwsmh 🔹Subscribe To The Channel: https://www.youtube.com/@Benzinga ------------------------------------------------------------------------------------ ⚠️ Disclaimer: Investing in financial markets carries risk, and there are no guaranteed returns. All information is for educational purposes only and should not be taken as financial advice. Always do your own research and speak with a qualified financial advisor before making investment decisions. Only invest what you can afford to lose. Past performance does not guarantee future outcomes. #StockMarket #StockMarketNews #Trading #StockMarketLive #Stocks #stocktrading #learntotrade #DayTrading #StockMarketToday