Broadcom's AI semiconductor revenue reached $16.70B, up 221% year over year, and total revenue rose 85.5% to $29.59B, yet the stock is down 6.45% this year at $323.24. The article says shares sit near the 52-week low of $288.95 rather than the high of $493.28, and points to competition from Google's cheaper second sources and a 210 basis point sequential drop in gross margin. The article's model sets a one-year target of $402.33, while the consensus target is $527.59. Reaching $650 by 2030 would require a 101.1% gain, or about 35x the forward EPS of $18.376. The article ties this to AI revenue of roughly $115 billion in fiscal 2027 and $230 billion in fiscal 2028, with management saying fiscal 2028 EPS should exceed $30. The main risk noted is that a few AI labs drive most of the demand.
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