Key Stats for Broadcom Stock
- Price change for Broadcom stock in the last 6 months: 4%
- $AVGO Stock Price as of Sep. 15: $339
- 52-Week High: $495
- $AVGO Stock Price Target: $532
Now Live: Discover how much upside your favorite stocks could have using TIKR’s new Valuation Model (It’s free)>>>
What Happened?
Broadcom (AVGO) stock dropped around 5% on Monday after Anthropic CEO Dario Amodei published a weekend essay calling for AI labs to slow down how fast they build more powerful models.
OpenAI’s Sam Altman and Elon Musk supported the idea, and it spooked investors across the chip sector. The iShares Semiconductor ETF fell 5.6% the same day, and other data-center component makers took hits too.
But Tan wasn’t rattled. Asked directly on CNBC’s “Mad Money” whether the slowdown debate changed his outlook, he said “No, not in the least.”
He pointed to strong and durable demand for AI compute, both for training new models and running them day to day.
That confidence matters because Anthropic is one of Broadcom’s most important customers.
Tan said Anthropic is on track to become Broadcom’s largest custom chip customer in 2027, and expects that to hold through 2028.
Google has historically held that title through their long-running TPU partnership.
Tan wasn’t entirely dismissive of safety concerns.
He agreed that AI needs some guardrails, comparing it to any powerful tool that requires proper governance.
But he pushed back on the idea that AI is some kind of runaway threat, saying, “It’s not a live animal that will run wild by itself.”
Instead, he framed AI as a productivity tool similar to the Industrial Revolution, one that will ultimately raise living standards.
See analysts’ growth forecasts and price targets for Broadcom stock (It’s free) >>>
What the Market Is Telling Us About Broadcom Stock
Investors watching Broadcom stock got a lot to chew on from the company’s fiscal Q3 earnings call just days before Tan’s TV interview.
- AI semiconductor revenue grew 221% year over year in the quarter, hitting $16.7 billion and making up 56% of total semiconductor revenue.
- Total consolidated revenue reached $29.6 billion, up 86% year over year, with operating margin hitting a record 68%.
The bigger story for Broadcom stock is the forward guidance.
Tan reaffirmed that AI semiconductor revenue is expected to hit $115 billion in fiscal 2027, then double again to $230 billion in fiscal 2028.
Broadcom’s six major XPU customers, including Google, Anthropic, OpenAI, and Meta, are all ramping up custom chip deployments over the next few years.
Free cash flow hit a record $13.7 billion in the quarter, representing 46% of revenue, giving Broadcom plenty of room to keep investing in capacity while also paying down debt and returning cash to shareholders through dividends.
For anyone tracking Broadcom stock, Tan’s message this week boils down to one thing: despite the noise around AI development pacing, the underlying demand for compute infrastructure isn’t slowing down, and neither are Broadcom’s growth targets.
Estimate a company’s fair value instantly (Free with TIKR) >>>
How Much Upside Does Broadcom Stock Have From Here?
With TIKR’s new Valuation Model tool, you can estimate a stock’s potential share price in under a minute.
All it takes is three simple inputs:
- Revenue Growth
- Operating Margins
- Exit P/E Multiple
If you’re not sure what to enter, TIKR automatically fills in each input using analysts’ consensus estimates, giving you a quick, reliable starting point.
From there, TIKR calculates the potential share price and total returns under Bull, Base, and Bear scenarios so you can quickly see whether a stock looks undervalued or overvalued.
See a stock’s true value in under 60 seconds (Free with TIKR) >>>
Looking for New Opportunities?
- See what stocks billionaire investors are buying so you can follow the smart money.
- Analyze stocks in as little as 5 minutes with TIKR’s all-in-one, easy-to-use platform.
- The more rocks you overturn… the more opportunities you’ll uncover. Search 100K+ global stocks, global top investor holdings, and more with TIKR.
Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
