Overview
- Broadcom shares fell roughly 17% over the past month, including a 14.1% drop in December after guidance for about a 100‑basis‑point sequential gross‑margin decline tied to a lower‑margin product mix.
- Goldman Sachs added the stock to its US Conviction List on Jan. 5 with a $450 price target, while Truist raised its target to $510 and UBS to $475, each maintaining Buy ratings.
- UBS analyst Timothy Arcuri now expects Broadcom’s AI semiconductor revenue to exceed $60 billion in fiscal 2026, nearly tripling year over year, and he lifted longer‑term revenue and EPS estimates.
- Forbes contends Nvidia offers stronger recent revenue growth, profitability, and a comparatively lower valuation than Broadcom, sharpening the debate over which AI hardware name is the better buy.
- Broadcom’s fiscal Q4 revenue rose 28% to $18.02 billion as AI chip sales jumped 74%, but investor concerns about near‑term profitability and China‑related AI hardware risks have pressured the stock.