Broadcom (AVGO) closed at an all-time high of $479.90 on June 2 but now trades near $345, down nearly 30% over five months. The semiconductor business, which makes up 70% of revenue, is growing mainly on custom AI accelerators (XPUs) sold to hyperscalers, while infrastructure software accounts for the other 30%. AI semiconductor revenue is projected to surge 186% to $58 billion in fiscal 2026, or 55% of revenue, then roughly double to $115 billion in fiscal 2027 and double again to $230 billion in fiscal 2028. The stock trades at 21 times next year's earnings, and the article attributes the pullback to the Fed's September rate hike, rising Treasury yields and other macro headwinds. It argues that a forward P/E of 30 could still lift the stock to the mid-$490s by year-end.
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