Broadcom Gets Strong Buy Upgrade as AI Backlog and Revisions Strengthen Bull Case

Overview

• Seeking Alpha upgraded Broadcom to Strong Buy, citing aggressive upward earnings revisions and an expected decline in the forward P/E to below 20 within two years.
• Broadcom beat fiscal Q4 expectations on December 11, yet the shares have fallen more than 16% since the report.
• Management warned that a higher mix of lower‑margin custom AI chips and full‑rack systems will pressure profitability, with commentary pointing to roughly a 100‑basis‑point impact.
• The company disclosed about $73 billion in AI‑related backlog slated for shipment over roughly the next 18 months.
• Recent highlights include plans for a custom AI chip in 2026, an $11 billion Anthropic order for the second half of 2026, and supportive analyst views such as Deutsche Bank’s Buy rating with a $430 price target along with encouragement from Broadcom’s Google TPU co‑design.