Truist Lowers Broadcom Stock Target Amid Mixed Earnings Reaction
Broadcom (AVGO) reported a strong fiscal Q3 with $29.6 billion in revenue, up 86% year-over-year and beating earnings estimates. Despite the positive results, Truist Securities reduced its price target for AVGO to $520 from $550 due to concerns over forward guidance and a slight miss in software sales. The firm’s analyst William Stein highlighted that while revenue growth was impressive—especially with AI semiconductor revenue surging 221% year-over-year—the fourth-quarter outlook fell short of expectations. Broadcom also raised its long-term AI revenue targets, projecting $115 billion by fiscal 2027 and doubling to $230 billion in 2028. However, potential bottlenecks such as data-center construction delays, power constraints, and supply chain issues could hinder growth. Analysts remain largely bullish on the stock with a consensus Strong Buy rating and an average target of about $521.41.
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