Newsquawk Logo

Sell-side on Broadcom (AVGO) post-earnings: Mostly PT lifts, as Citi sees sell off as a 'buying opportunity', while Macquarie downgrades shares

Newsquawk StaffPublished On the live feed at — 8 more headlines followed before this page went public
Newsquawk headlinesUTC

Airbus (AIR FP) reportedly delivered 81 aircrafts in May, reports suggest (prev. 67 in April)

Newsquawk Daily US Equity Opening News - AVGO falls after sales miss & disappointing guidance; CRWD outlook underwhelms

Sell-side on Broadcom (AVGO) post-earnings: Mostly PT lifts, as Citi sees sell off as a 'buying opportunity', while Macquarie downgrades shares

Ciena (CIEN) says the largest hypescalers have increased 2026 capex plans since its March update, with indications of continued expansion into 2027

OPEC SecGen says still see robust oil demand growth, and are not changing its estimates

Open the platform and use it. The whole workspace is free to try, with no signup and no card. When you want the headlines arriving live instead of on a delay, Newsquawk Pro is £24.99 for 7 days.

Try the platform free
Free. No signup, no card.
  • JPMorgan raises PT to USD 580 (prev. 500) and keeps an ‘Overweight’ rating; firm came away from Q2 earnings report "incrementally more positive" on its growth outlook over the next couple of years. Broadcom's AI compute buildout "remains early-innings", and AVGO remains JPMorgan's top pick in the semiconductor sector.
  • KeyBanc raises PT to USD 575 (prev. 500) and keeps an ‘Overweight’ rating; said Co. reported in-line Q2 and guided Q3 higher given higher infrastructure software. Broadcom's guide for FY26 AI revenues were in line, while FY27 AI revenues of USD 100bln+/10GW were maintained. The ramp of 10GW deployments in FY27 was disappointing, but it is expected to be second-half-of-the-year-weighted, implying significant growth in FY28, adding USD 100bln appears conservative.
  • Jefferies raises PT to USD 550 (prev. 500) and keeps a ‘Buy’ rating; noted the mixed print, whereby guidance underwhelmed, however, says Broadcom's operating margins should still improve as AI revenue accelerates, particularly as Meta (META) and OpenAI begin to ramp next year.
  • Benchmark raises PT to USD 545 (prev. 485) and keeps a ‘Buy’ rating; shares sold off after-hours, which the firm blames on the market "measuring the report against an elevated AI semiconductor bar rather than published estimates." While the firm expects a further contributor to the stock's weakness was mgmt’s. public acknowledgement that Google (GOOGL), Broadcom's largest TPU customer, is expected to diversify its TPU supplier base as its own AI compute consumption expands. Benchmark also believes this supplier-diversification to MediaTek issue has become "widely expected and understood by industry followers”.
  • Oppenheimer raises PT to USD 535 (prev. 450) and keeps an ‘Outperform’ rating.
  • BofA raises PT to USD 530 (prev. 450) and keeps a ‘Buy’ rating; Q2 results and Q3 outlook were "only modestly above St. expectations," but the firm flags that the "important absolute AI growth" remains on track for about 180% Y/Y in FY26 and almost 100% Y/Y in FY27. Multiple new custom XPU accounts, including Anthropic, Meta (META), OpenAI, and two others, are expected to ramp in the coming quarters, likely adding to the strong Google (GOOGL) TPU base.
  • Deutsche Bank raises PT to USD 515 (prev. 430) and keeps a ‘Buy’ rating; views Q2 report as solid. However, only reiterating its long-term AI targets was somewhat disappointing. Deutsche views the post-earnings selloff as a buying opportunity.
  • Morgan Stanley raises PT to USD 502 (prev. 485) and keeps an ‘Overweight’ rating; putting high expectations aside, the firm said Co. reported "very strong results," adding that it expects the outlook to "remain conservative." MS sees value in the "core compute names" Nvidia (NVDA) and Broadcom, which it argues "have been left behind by stocks with less AI exposure."
  • Citi maintains ‘Buy’ rating and PT of USD 500; recommends buying shares on the post-earnings selloff. Adds Cos. AI sales are accelerating, and sees improved AI visibility into 2028.
  • UBS lowers PT to USD 485 (prev. 490) and keeps a ‘Buy’ rating; noted AVGO reported very strong order demand, but its decision not to raise AI rev. expectations for FY26 or ’27 disappointed, with supply constraints appearing to be the main limitation, while continued expansion of custom ASIC partnerships supports the longer-term growth outlook.
  • Macquarie downgraded shares to ‘Neutral’ from ‘Outperform’ and lowered PT to USD 437 (prev. 513); firm cites Google's (GOOGL) shift toward insourcing chips for the downgrade. AVGO was previously the only application-specific integrated circuits vendor in Google's supply chain, but Google is now working with MediaTek and developing in-house capabilities. Macquarie expects Cos. market share to "decline meaningfully" in 2027 as a result. While Cos. share upside is constrained by concerns over market share loss and potential margin pressure given increasing competition, the downside risk is supported by Broadcom's valuation.

Related headlines

The whole workspace, free to try.

Try it free
Newsquawk Logo

© 2026 Newsquawk. All rights reserved.