Prediction: Broadcom Stock Is Going to $1,000 by 2028

Broadcom reported fiscal Q2 revenue of $22.2 billion, up 48% year over year, with non-GAAP EPS rising 54% to $2.44, but shares fell nearly 8% after revenue and AI chip guidance missed elevated expectations. AI revenue jumped 143% to $10.8 billion, and management still expects $56 billion in AI chip revenue in fiscal 2026 and at least $100 billion in fiscal 2027. The article argues the pullback is a buying opportunity, citing strong AI demand and a path to over $1,000 per share over the next three years.

Analysis

The knee-jerk selloff looks more like a positioning reset than a thesis break. The market had effectively priced in a near-term guide raise, so the miss matters less than the fact that AI-related revenue is still compounding at a pace that forces upward estimates over the next 2-3 quarters. In other words, the stock is now more sensitive to order timing and customer ramp cadence than to long-horizon demand, which is where the opportunity lies.

The second-order winner is not just AVGO’s own mix shift; it is the vendors embedded in its custom silicon and networking ecosystem. As hyperscalers move from experimentation to deployment, the bottleneck shifts toward advanced packaging, high-speed interconnect, memory bandwidth, and optical networking, which should keep pressure on adjacent suppliers even if the headline AI ASIC trade becomes crowded. That dynamic is also quietly constructive for META and NVDA: META as a large-scale buyer that validates custom infrastructure economics, and NVDA as the default fallback when custom designs face schedule slippage or performance limits.

The main risk is that the market is treating AVGO like an “AI growth annuity,” when in reality the next several quarters will still be lumpy and customer-concentrated. If any one of the top customers slows capex, the multiple can compress quickly because consensus now embeds a very steep earnings ramp; that makes the stock vulnerable to even modest execution disappointments over the next 1-2 earnings prints. The contrarian read is that the long-term AI revenue path is probably intact, but the near-term upside is less about accelerating guidance and more about the probability that estimates keep ratcheting higher without a reset in multiples.

This sets up a tactical setup rather than a blind long: buy weakness only if the stock stabilizes after the post-earnings de-risking, and use options to define downside because valuation leaves little room for an error in shipment timing. The cleaner expression is to own AVGO against a basket of AI beneficiaries where the valuation is less stretched and the demand visibility is broader, rather than betting on outright multiple expansion from here.

Key Decisions for Investors

• Buy AVGO on post-earnings weakness only after confirmation that the selling pressure is exhausted; time horizon 1-3 months, targeting a re-rating as sell-side estimates catch up, with a stop if the stock loses the post-gap support zone on heavy volume.
• Use a call spread in AVGO rather than stock for the next 2-4 quarters; upside is still meaningful if AI revenue keeps compounding, but defined-risk structures better fit the valuation and customer-concentration risk.
• Pair long AVGO / short a basket of high-multiple AI infrastructure names that depend on speculative future ramps; this isolates execution quality and reduces exposure to a broad de-rating in AI semis.
• Favor NVDA on any relative weakness versus AVGO over the next 1-2 months if the market starts to question custom-chip monetization durability; NVDA retains the cleaner default-beneficiary status when bespoke ramps slip.
• Treat META as a secondary beneficiary and look for pullbacks to add over 3-6 months; its capex intensity supports the custom-infra ecosystem, but the better trade is via suppliers to the buildout rather than the platform name itself.