Particle.news
Download on the App Store

Analysts Rally to Broadcom After Selloff, Pointing to $73B AI Backlog and $8.2B Q1 Guide

Analysts cite a $73 billion AI backlog to argue the selloff overlooks multi‑quarter demand.

Overview

  • Broadcom reported record Q4 2025 revenue of about $18.0 billion and FY revenue of roughly $63.9 billion, driven by AI hardware and networking.
  • Management disclosed an AI-related order backlog of approximately $73 billion slated for delivery over the next six quarters, providing extended visibility.
  • For Q1 2026, the company guided to $19.1 billion in total revenue, about $8.2 billion from AI, and adjusted EBITDA around 67%, with an expected ~100 basis-point sequential gross-margin decline due to mix.
  • Shares have fallen more than 20% from early-December highs as investors weigh margin pressure, customer concentration and elevated valuation multiples.
  • J.P. Morgan, Piper Sandler and Morgan Stanley reiterated bullish views or raised targets, while separate commentary speculates about very large OpenAI and Anthropic custom-chip deals that remain unconfirmed by the company.