Broadcom Stock Slides After Strong Earnings: Analysts Boost Targets On $73B AI Backlog, New Customers

Broadcom Inc (NASDAQ:AVGO) shares tanked in early trading on Friday, even after the company on Thursday reported upbeat fiscal fourth-quarter earnings.

• Broadcom shares are retreating from recent levels. What’s behind AVGO decline?

Here are some key analyst takeaways:

• BofA Securities analyst Vivek Arya maintained a Buy rating, while raising the price target from $460 to $500.
• Goldman Sachs analyst James Schneider reiterated a Buy rating, while lifting the price target from $435 to $450.
• Benchmark analyst Cody Acree reaffirmed a Buy rating, while taking the price target higher from $385 to $485.
• Rosenblatt Securities analyst Kevin Cassidy reiterated a Buy rating, while raising price target from $440 to $450.

Check out other analyst stock ratings.

BofA Securities: Broadcom reported AI backlogs of $73 billion for the next six months, topping consensus of $69 billion, Arya said in the note. The company's backlog and order visibility continue to increase, and management suggested $50-$100 billion in AI sales is possible in fiscal 2026-2027, he added.

Broadcom confirmed Anthropic as its fourth customer, which added orders worth $11 billion for late-2026 delivery, the analyst stated. The company also announced a fifth customer, which "could potentially be Apple Inc (NASDAQ:AAPL), in our view, given it’s a traditional customer with a long-term agreement for large-scale deployment," he further wrote.

Goldman Sachs: Broadcom reported revenues of $18 billion, beating Street expectations of $17.5 billion, Schneider said. Gross margins came in at 77.9%, just above consensus of 77.7%, he added.

AI Semiconductor revenues and guidance both came well above expectations, suggesting "ongoing momentum across both XPU and networking," the analyst wrote. Management refrained from updating their prior AI revenue growth guidance for fiscal 2026, he further stated.

Benchmark: With Broadcom's stock climbing more than 120% over the past year, profit-taking would have triggered a selloff regardless of the latest results, Acree said. The latest release included Anthropic orders of $21 billion over the past two quarters and an AI order backlog of $73 billion over the next six months, he added.

"Broadcom is also the most direct beneficiary of Google's successful push to deploy its Ironwood TPUs for third-party use to a growing list of customers," the analyst wrote. The company's AI semiconductor business rose 25% sequentially and 76% year-over-year, while AI chip sales grew 25% sequentially and more than 100% year-over-year, he further stated.

Rosenblatt Securities: Broadcom reported revenue growth driven by strong AI semiconductor demand, Cassidy said. Non-GAAP earnings came in at $1.95 per share, higher than consensus of $1.87 per share, he added.

Broadcom expects AI revenue to continue growing throughout 2026, the analyst stated. "We see Broadcom’s expanding XPU customer base as reducing any dependence on OpenAI," he further wrote.

AVGO Price Action: Shares of Broadcom had declined by 10.55% to $363.07 at the time of publication on Friday.

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