EL7.AI
StocksMediumUpdated×9•Originally published 3 September 2026•Updated 3 September 2026•
1 min read

Broadcom Shares Slip as Analyst Reactions Diverge Despite AI Sales Surge

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Key Facts

1Broadcom expects AI semiconductor revenue to surge from $58 billion in FY2026 to approximately $230 billion by FY2028.
2Q3 AI revenue increased 221% to $16.7 billion.
3Broadcom's operating margin reached 67.9% despite an unfavorable product mix.

Amid a wave of conflicting assessments from major financial institutions, Broadcom shares fell 3% on Thursday despite reporting strong financial results driven by a 221% surge in AI semiconductor sales. According to reports, the company achieved 86% total revenue growth in the third quarter and raised its fourth-quarter revenue guidance to $21.7 billion, yet market reaction reflected a clear divide over the stock's future valuation.

On the valuation front, Wall Street firms issued a series of divergent updates; Cantor Fitzgerald raised its price target to $600, while Evercore ISI lowered its target to $578. While Morgan Stanley adjusted its target upward to $505, TD Cowen took a more cautious stance by cutting its target to $475, highlighting uncertainty regarding the sustainability of record 68% margins despite ongoing partnerships with Google, Meta, and OpenAI.

Regarding price action, AVGO closed at $367.24 (as of September 02, 2026), with investors now watching to see if the stock can stabilize following Thursday's decline. With no major technology catalysts on the economic calendar for the next seven days, traders will focus on how the market digests these mixed analyst signals and their impact on short-term momentum.