Evercore Stays Bullish on Broadcom (AVGO) After Earnings, Lifts Target to $490

Broadcom posted October 4th results connected December 11 aft markets closed. The company’s gross came successful astatine $18.02 billion, solidly beating expectations of $17.46 billion. Meanwhile, adjusted net per stock (EPS) roseate 37% to $1.95, beating expectations of $1.87.

More importantly, maturation successful the artificial quality (AI) semiconductor concern came successful astatine 74%, beating Broadcom’s guidance of 66% growth. Despite these numbers, Broadcom shares plunged an estimated 4% aft the net telephone ended.

The steadfast believes that this post-earnings plunge offers an charismatic introduction constituent for the stock.

“Buyers of Weakness. We reiterate our O/P standing for AVGO aft it printed OctQ revenues 3% supra and raised JanQ revenues by 4%, with AI revenues accelerating from +74% YoY to +100% YoY and absorption highlighting visibility for AI revenues to astatine slightest 2x successful some FY26 and FY27. We judge post-earnings connection an charismatic introduction constituent with shares little by 5% AH considering implied 2027 P/E of 29x and 2026 PEG of 1.1x. We summation our PT to $490 reflecting 40x our 2027 EPS of $13.36 discounted back.”

Broadcom is simply a exertion institution uniquely positioned successful the AI gyration owing to its customized spot offerings and networking assets.

While we admit the imaginable of AVGO arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you're looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.

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