<\/p>\n
Broadcom (AVGO) just delivered one of its strongest quarters ever, yet the stock slipped, and at least one Wall Street firm trimmed its price target.<\/p>\n
That mix of good news and caution is what investors are weighing right now.<\/p>\n
Broadcom designs custom chips and networking gear that power the data centers behind today’s biggest artificial intelligence systems. <\/p>\n
It also sells infrastructure software after buying VMware.<\/p>\n
The company makes most of its money selling semiconductors to giant cloud customers and charging recurring fees for that software.<\/p>\n
Why Truist trimmed its Broadcom price target after earnings<\/p>\n
Truist Securities lowered its 12-month target on Broadcom to $520 from $550 on September 3, 2026, while keeping its Buy rating, Investing.com reported.<\/p>\n
Analyst William Stein called the results good, though not spotless. Two things bothered him:<\/p>\n
The forward guidance. Broadcom guided fourth-quarter revenue to about $34.8 billion, just under the high end of what Wall Street wanted, according to CNBC.<\/p>\n
A small software miss. The infrastructure software unit landed slightly below expectations, which pushed sentiment lower.<\/p>\n
Stein also cut his fiscal 2027 earnings estimate slightly, to $21.12 per share from $22.35.<\/p>\n
Broadcom’s stock pulled back after fiscal third-quarter results even as the company raised its long-term AI revenue targets.<\/p>\n
NurPhoto \/ Getty Images<\/p>\n
What Broadcom actually reported in fiscal Q3<\/p>\n
The fiscal third-quarter numbers, reported September 2, were huge.<\/p>\n
Revenue rose 86% from a year earlier to $29.6 billion, and adjusted earnings hit $3.32 a share, beating expectations of $3.25, Broadcom confirmed.<\/p>\n
AI semiconductor revenue grew 221% year over year, the fastest-growing part of the business.<\/p>\n
The quarter beat expectations. However, the market wanted next quarter’s guidance to be bigger.<\/p>\n
The AI targets that still support the bull case<\/p>\n
Broadcom raised its long-term AI outlook.<\/p>\n
CEO Hock Tan said the company expects AI revenue to roughly double to about $115 billion in fiscal 2027, then double again to $230 billion in fiscal 2028, Investing.com reported. <\/p>\n
Tan said Broadcom has already secured supply to meet those figures, with demand from Google, Anthropic, OpenAI, and Meta.<\/p>\n
At $520, Truist’s reduced target still sits roughly 45% above Broadcom’s recent price near $357, so the firm sees the pullback as a valuation reset rather than a broken business.<\/p>\n
What could still hold Broadcom back<\/p>\n
The growth path depends on things outside a chip designer’s control, and Tan flagged some constraints.<\/p>\n
Data-center construction, power availability, advanced wafers, substrates, and high-bandwidth memory supply could all slow how quickly customers can deploy the chips.<\/p>\n
More AI Chip Stocks:<\/p>\n
Top analyst resets AMD stock price target for rest of 2026<\/p>\n
5-star analyst sets jaw-dropping Micron stock price target for 2026<\/p>\n
Citi renews Nvidia stock forecast ahead of earnings<\/p>\n
If any of those tighten, the 2027 and 2028 targets get harder to hit on schedule. <\/p>\n
There is also a concentration risk, since a handful of AI labs drive much of the demand.<\/p>\n
Where Wall Street stands on Broadcom stock now<\/p>\n
Truist is not the only one that moved its target, and the reactions were split.<\/p>\n
TD Cowen cut its target to $475, while Citi raised its target to $515 and Cantor Fitzgerald pushed to $600.<\/p>\n
Across 29 analysts, Broadcom holds a consensus Strong Buy rating with an average target of about $521.41.<\/p>\n
What investors can take from the Broadcom reaction<\/p>\n
Broadcom shares have lagged the wider chip sector this year, rising only about 6% in 2026, while the group climbed far more. <\/p>\n
That’s why the bar heading into earnings was already high.<\/p>\n
A few things worth watching before deciding:<\/p>\n
Whether AI orders from Google, OpenAI, and Meta maintain their pace<\/p>\n
Whether supply and power bottlenecks relax into 2027<\/p>\n
How much software revenue recovers next quarter<\/p>\n
If those trends stay firm, a lower target after a record quarter may prove to be a short-term dip rather than a warning.<\/p>\n
The custom-chip demand driving Broadcom has not faded. The market just wanted more of it, faster.<\/p>\n
Related: Nvidia just sent a strong signal to AMD and Intel investors<\/p>\n
#Truist #cuts #Broadcom #stock #target #rattling #outlook<\/p>\n","protected":false},"excerpt":{"rendered":"
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