Broadcom's $100B AI Bet: Will AVGO Close Its Gap?

Broadcom stock analysis this week centres on a stock that has climbed strongly over the past year yet is still trading well below its all time high. AVGO recently traded near 427.76 dollars, more than 13 percent below its 52 week high of 495 dollars set before a sharp post earnings drop in June. 

Wall Street's average price target sits closer to 520 dollars, implying a meaningful gap between where the stock trades now and where analysts expect it to go.

Key Takeaways

• AVGO trades near 427.76 dollars, more than 13 percent below its 52 week high of 495 dollars reached before a sharp post earnings drop in June.

• Wall Street's average 12 month price target sits between roughly 519 and 528 dollars, implying upside in the low twenty percent range, with the Street high price target at 675 dollars.

• Management maintained its 2027 AI chip revenue opportunity at 100 billion dollars while raising expected AI chip shipments above 10 gigawatts, a mixed signal that has kept analyst sentiment strong but slightly less bullish than three months ago.

Broadcom's Price Action and the Post Earnings Gap

AVGO has had a strong run over the past year, gaining 38.4 percent compared with a 21.6 percent rise for the S&P 500 over the same period, and it is up 21.5 percent so far this year against the index's 13.2 percent gain. 

That said, the stock has lagged the wider technology sector, with the State Street Technology Select Sector SPDR ETF returning 41.3 percent over 52 weeks and 29.6 percent year to date. 

Broadcom Technical Analysis, Source: TradingView

According to Bitrue Research Institute, the clearest gap in the chart came on June 3, when Broadcom shares fell 12.6 percent in a single session after the company reported second quarter revenue of 22.19 billion dollars, below what the market had expected, alongside third quarter AI chip revenue guidance of 16 billion dollars. 

AVGO recently traded near 427.76 dollars, within a day's range of 421.61 to 430.84 dollars, still well short of its 52 week high of 495 dollars. Closing that gap would likely require a fresh catalyst rather than the steady grind that has carried the stock higher so far this year.

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The 100 Billion Dollar AI Chip Bet

At the centre of the June sell off was Broadcom's decision to hold its long term AI chip revenue opportunity for 2027 at 100 billion dollars, even as it raised its expected AI chip shipments to more than 10 gigawatts.

Investors had been hoping for an upward revision to the dollar figure itself, and the absence of one overshadowed what was otherwise a solid quarter. 

Bitrue Research Institute frames the sell-off differently: the market wasn't reacting to Broadcom's numbers, it was reacting to a number that didn't move. Guidance for AI chip shipments went up, but investors had already priced in a higher 2027 revenue target, and when that figure stayed flat, the stock reset even though the underlying growth story hadn't changed. 

Broadcom did guide third quarter total revenue to approximately 29.4 billion dollars, ahead of expectations, and its custom AI accelerators, often described as ASICs, continue to see strong demand alongside high speed Ethernet networking products used in AI data centres. 

For the fiscal year ending in October 2026, analysts expect earnings per share to climb 81.9 percent year over year to 10.24 dollars. Broadcom has beaten consensus estimates in three of its last four quarters, missing only once, which is part of why the stock has continued to attract buyers even after the post earnings drop.

What Wall Street Analysts Are Saying About AVGO

Avgo Technical Analysis, Source: Barchart

Analyst sentiment on Broadcom remains firmly positive, with the overall rating sitting at Strong Buy. Coverage from Investing.com shows the vast majority of analysts rating the stock a buy, with only a small number on hold and none recommending a sell, while separate coverage from Barchart puts the split closer to 5 strong buy, 4 moderate buy and 3 hold ratings among 42 analysts, with hold ratings outnumbering strong buy calls more than they did three months earlier.

Average 12 month price targets across these services sit between roughly 519 and 528 dollars, implying upside in the low twenty percent range from current levels. The Street high price target sits at 675 dollars, suggesting upside of around 60 percent in the most optimistic case, while the lowest published targets sit well below the current share price. 

Recent target changes have leaned constructive, with Jefferies at 550 dollars, CLSA at 600 dollars and JPMorgan at 580 dollars, alongside a downgrade to hold from Erste Group in early July.

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Could AVGO Close the Gap?

Whether AVGO closes the gap to its 52 week high, or to the average analyst price target, likely depends on the next few quarters of AI chip revenue rather than sentiment alone. 

The stock's underperformance relative to the broader technology sector this year suggests some investors are waiting for confirmation that the 100 billion dollar 2027 opportunity is on track before pushing shares back toward previous highs. 

A strong AI chip revenue print in the coming quarters could narrow that gap quickly, while another cautious guide could see the stock consolidate closer to current levels for longer. 

For traders who want to follow this kind of data and act on it directly, Bitrue offers a straightforward way to gain exposure to Broadcom alongside crypto markets, all from one account. Stocks like AVGO sit within Bitrue’s broader TradFi trading platform, where tokenized equities, indices and commodities can be traded around the clock alongside crypto.

Conclusion

Broadcom's story this year has been one of strong underlying growth colliding with high expectations. AVGO has outpaced the S&P 500 over the past year and year to date, yet a sharp post earnings drop in June left the stock trading well below both its 52 week high and Wall Street's average price target. 

Analyst sentiment remains a firm Strong Buy, supported by rising AI chip shipment guidance and a projected 81.9 percent jump in earnings per share this fiscal year, even if the 100 billion dollar 2027 opportunity was left unchanged. 

FAQ

Why did Broadcom stock drop in June 2026?

AVGO fell 12.6 percent after second quarter revenue of 22.19 billion dollars came in below expectations and management kept its 100 billion dollar 2027 AI chip revenue opportunity unchanged rather than raising it.

What is Broadcom's average analyst price target?

Coverage from Investing.com and Barchart puts the average 12 month price target between roughly 519 and 528 dollars, with a Street high of 675 dollars.

How has AVGO performed compared to the S&P 500?

Broadcom has gained 38.4 percent over the past 52 weeks and 21.5 percent year to date, both ahead of the S&P 500's 21.6 percent and 13.2 percent returns over the same periods.

What is driving demand for Broadcom's AI chips?

Broadcom's custom AI accelerators, often called ASICs, along with high speed Ethernet networking products used in AI data centres, are the main drivers behind the company's AI chip revenue growth.

Can I trade Broadcom stock on Bitrue?

Bitrue offers tokenized exposure to Broadcom through spot and leveraged tokenized stock products, allowing crypto native traders to track AVGO's price from the same account used for crypto trading.

Disclaimer: 

This article is for informational purposes only and does not constitute financial advice. Cryptocurrency markets are highly volatile and carry significant risk, including the potential loss of principal. Always conduct your own research before making investment decisions. Certain products and services referenced may not be available to residents of restricted jurisdictions, including but not limited to the United States, Canada, the United Kingdom, the European Economic Area, and China.