Broadcom’s AI Push Fires Upward Bets Even as Shares Slip

Broadcom has fallen over three months despite a strong second quarter beat and a surge in AI-related revenue. BNP Paribas Exane raised its target to $675 (about 61% upside), while the consensus target sits near $528 (roughly 26% upside) with most analysts Buy-rated. Broadcom reported Q2 revenue of $22.19B (up 47.9% YoY) and AI revenue of $10.8B, guiding Q3 AI revenue to about $16B and projecting over $100B in AI revenue by 2027. The stock trades around $418 with a forward P/E near 69. The bull case depends on AI backlog conversion and continued hyperscaler demand, while bears warn of valuation risk and customer concentration; the relative setup shows Broadcom lags peers like NVIDIA and AMD but offers meaningful upside if AI demand accelerates.