Broadcom (AVGO) Stock Dip Seen as Buying Opportunity Amid AI Growth Surge
Wells Fargo upgraded Broadcom to Overweight after a 4.2% dip, framing the pullback as a strategic entry point. The firm projects 2026 revenue at $100.3 billion, with AI semiconductor growth driving 116% gains—a bet on Broadcom’s deepening partnership with Alphabet on tensor processing units.
Q4 fiscal 2025 earnings outperformed expectations: revenue surged 28% to $18.02 billion, while AI semiconductor revenue spiked 74%. Wall Street remains bullish, with 36 of 42 analysts maintaining Strong Buy ratings and a $455.22 mean price target (29% upside).
Short-term pressures—Chinese tech restrictions, insider sales, and a debt offering—mask structural advantages. Broadcom expects AI revenue to double YoY to $8.2 billion in Q1 2026, cementing its role in AI infrastructure.