Broadcom’s AI-Driven Growth Faces Margin Scrutiny After 11% Post-Earnings Drop
Truist's bullish $510 price target for Broadcom reflects Wall Street's conviction in AI semiconductor growth, despite the stock's recent volatility. The 74% surge in AI revenue to $18 billion last quarter demonstrates accelerating adoption, though shrinking backlog and margin pressures triggered a market overreaction.
Investors overlooked record fundamentals: $43 billion EBITDA and $26.9 billion free cash FLOW showcase operational excellence. The coming quarters will test whether Broadcom's AI infrastructure play can offset cyclical weaknesses elsewhere in its portfolio.