Broadcom’s Margin Outlook Overshadows Record AI Revenue

Despite posting record-breaking quarterly results in December, Broadcom saw nearly a fifth of its market value erased. The semiconductor and software giant is experiencing growth in artificial intelligence (AI) that outpaces most rivals, yet Wall Street has refocused the narrative: soaring revenue does not automatically translate to higher profitability. The shares currently trade around $350 as analysts debate mounting margin pressure.

The market’s long-term outlook remains largely positive. Among 40 covering analysts, 34 maintain a “Buy” rating, with three suggesting a moderate purchase. Only three consider the stock fairly valued at current levels. The consensus price target sits between $456 and $465, implying potential upside of over 30%. Morgan Stanley has set a target of Read more...