Broadcom trades at a 57% discount to consensus price targets as investors weigh concerns over hyperscaler capex cadence against the company's robust custom silicon pipeline and projected $30 EPS by 2028.
Rosenblatt raised its price target to $600 implying 77% upside, citing strong AI revenue growth and fiscal 2028 EPS expectations.
NVIDIA is up 15% YTD with data center revenue up 117% and 57 of 60 analysts at Buy or Strong Buy.
AMD is up 139% YTD with data center revenue up 107%, but consensus target implies limited further upside.
Marvell's custom silicon story re-rated shares 170.7% YTD, leaving less room to run despite supportive analyst posture.
S&P 500 is up 10.59% YTD, outperforming AVGO which is down 1.54% YTD.
Broadcom (AVGO) faces a disconnect between strong fundamentals and recent share price weakness, with the stock down 1.54% YTD despite nine consecutive earnings beats. Rosenblatt Securities recently raised its price target to $600, citing massive AI revenue growth projections for fiscal 2028 and the company's critical role as a custom silicon partner for major hyperscalers.
While Broadcom has posted nine consecutive EPS beats, the stock has suffered from investor concerns regarding customer concentration among hyperscalers and reports of slowed AI capacity deployment, leading to a divergence from the broader AI semiconductor rally.