Truist Lowers Broadcom Stock Target Amid Cautious Q4 Outlook
On September 3, 2026, Truist Securities reduced its price target for Broadcom (AVGO) to $520 from $550 following the company’s fiscal third-quarter results and forward guidance. Despite strong earnings—$29.6 billion in revenue with AI semiconductor sales up 221% year-over-year—the firm cited concerns over a slightly below-expected software segment performance and conservative Q4 guidance of around $34.8 billion as reasons for the adjustment. Broadcom CEO Hock Tan raised long-term AI revenue targets, projecting growth to roughly $115 billion in fiscal 2027 and doubling again by 2028. However, Truist analyst William Stein noted potential bottlenecks such as data-center construction delays, power constraints, and supply chain issues that could hinder the company’s ability to meet these goals. The stock reaction was mixed across analysts: TD Cowen lowered its target while Citi raised it. The consensus remains a Strong Buy with an average price target of $521.41. Investors are now watching for signs of sustained demand from key AI clients like Google, OpenAI, and Meta.
Tickers: $AVGO
Topics: AI revenue guidance semiconductors stock price target