Broadcom Stock Is Pulling Back. Here’s What Analysts Expect Next.

Core Viewpoint - Broadcom's stock has experienced a significant decline of over 23% from its 52-week high, despite strong demand driven by AI and robust infrastructure software offerings [1] Group 1: Financial Performance - Fiscal 2025 was a record year for Broadcom, with revenue increasing by 24% year over year to $64 billion [5] - AI-related revenue surged by 65% to $20 billion, contributing to semiconductor revenue reaching a record $37 billion [6] - The infrastructure software segment grew by 26% to $27 billion, driven by strong adoption of VMware Cloud Foundation [6] Group 2: Market Outlook - Analysts on Wall Street remain optimistic about Broadcom, expecting the company to capitalize on AI-related demand and foresee meaningful upside potential for the stock over the next 12 months [2] - Management anticipates that customer spending on AI will accelerate further in fiscal 2026, which could support growth and lead to a recovery in share price [6] Group 3: Strategic Developments - A key growth driver for Broadcom is its custom accelerator, or XPU, business, which is increasingly adopted by hyperscalers and has wide applications [7] - Broadcom secured a $10 billion order for its latest Ironwood TPU racks from Anthropic, followed by an additional $11 billion order for delivery in late 2026 [8] - The company added a fifth XPU customer with a $1 billion order scheduled for late 2026 delivery [8]