Broadcom (AVGO) shares are down 7% in 2026 so far, but that may be set to change thanks to recent revenue guidance. Renewed AI pessimism has dragged AVGO and other AI stocks lower in recent weeks. However, it remains a healthy competitor to AI chipmaker Nvidia (NVDA), and was one of the hottest stocks last year as the AI wave roared on. Despite Broadcom stock being down 22% from its highs reached last year, Broadcom remains among the fastest-growing names on the stock market.
The growth of AVGO is expected to grow even faster in the coming years, according to several forecasts. EPS is expected to grow 66% in FY 2026, followed by 57% growth in FY 2027. Additionally, CEO Hock Tan says the company’s AI chip revenue will exceed $100 billion in 2027. The continued boom in revenue would be a direct spark for AVGO shares to continue their rally. Revenue is expected to grow at a similar clip, making AVGO a promising stock investment at its current price.
Furthermore, the company recently posted strong quarterly results yet again and highlighted just how massive its growth opportunities still are. Its first-quarter fiscal 2026 earnings were strong, with the company’s revenue totaling $19.3 billion for the period ending Feb. 1, which was an increase of 29% from the same period a year ago. Its net income of $7.3 billion rose at an even faster rate of 34%.
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As for price projections for Broadcom AVGO stock, Wall Street is adamant the stock will flourish. Analysts generally have a positive outlook on AVGO in 2026, with average price targets significantly higher than the current market price of $320. Susquehanna and Rosenblatt have a positive stance with $450 targets, while Benchmark is more aggressive at $485. Hence, the current slide in price presents a solid buy opportunity for a promising AI stock.
From fiscal 2025 to fiscal 2028, analysts expect Broadcom’s revenue and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to grow at CAGRs of 38% and 36%, respectively. With an enterprise value of $1.6 trillion, it still looks reasonably valued at 25 times this year’s adjusted EBITDA
