Broadcom Shares Drop 14% on $319B Market-Cap Wipeout, Analysts Buy The Dip
C•Broadcom is set to lose $319 billion in market cap after keeping fiscal 2026-27 AI revenue forecasts unchanged, triggering a 14% pre-market share drop. Analysts raised price targets to $530, $580 and $550 while Citi retained a $500 target, highlighting 180% fiscal 2026 AI growth and custom chip wins.
1. Market-Cap Impact
Broadcom’s decision not to raise fiscal 2026-27 AI revenue forecasts triggered a more than 14% pre-market share decline, wiping out approximately $319 billion in market capitalization on Thursday.
2. Analyst Responses
Citi maintained a Buy rating with a $500 target, while BofA, JPMorgan and Jefferies raised targets to $530, $580 and $550 respectively, citing long-term AI growth prospects despite mixed guidance.
3. AI Growth Trajectory
Broadcom expects AI revenues to grow roughly 180% in fiscal 2026 and nearly 100% in fiscal 2027, bolstered by custom chip contracts with Anthropic, Meta Platforms, OpenAI and Google’s TPU platform, indicating sustained infrastructure buildout demand.
