Overview
- Broadcom shares, up strongly this year, fell about 11%–16% after the Dec. 11 report as management warned that a higher mix of lower‑margin custom AI hardware would pressure profitability and guided roughly a 100‑basis‑point sequential gross‑margin decline.
- The company disclosed about $73 billion of AI orders slated for roughly 18 months, and UBS relayed that management views this figure as conservative with potential shipment closer to 12 months.
- Recent wins include about $21 billion in Anthropic orders over the past two quarters, while some reports cite an additional $11 billion Anthropic order for the second half of 2026 and note an announced custom AI chip planned for 2026.
- AI semiconductor revenue reached $6.5 billion in Q4 FY25 and is estimated around $8.2 billion for Q1 FY26, with Broadcom benefiting from Google TPU programs and broader hyperscaler projects.
- Fresh bullish views feature Deutsche Bank lifting its target to $430, UBS to $475, and Benchmark to $485, a Strong Buy consensus near $456, and a Seeking Alpha upgrade to Strong Buy tied to earnings revisions and a declining forward P/E, with valuation and hyperscaler capex cuts flagged as risks.