Broadcom (AVGO) Stock Rebounds After June Selloff — Analysts Signal Strong Buy Opportunity

Key Takeaways

Table of Contents

AVGO shares declined 14% during June but gained approximately 3% in Wednesday’s premarket session following positive J.P. Morgan analysis
J.P. Morgan maintained its Overweight recommendation with a $580 price objective, suggesting 54% potential upside
Wolfe Research forecasts Broadcom’s XPU revenue reaching between $250 billion and $300 billion by fiscal year 2028
J.P. Morgan dismissed concerns regarding Google TPU partnership, confirming the collaboration continues as planned
Among 55 Wall Street analysts surveyed by FactSet, 51 recommend buying AVGO with an average target price of $523.67

Broadcom shares experienced significant volatility throughout June. Following a record closing price of $481.57 on June 2, the semiconductor giant saw its stock tumble 14% by mid-month, settling at $376.71 on Tuesday. However, Wednesday’s premarket session offered renewed optimism, with AVGO climbing approximately 3.2% to $388.85.

Broadcom Inc., AVGO

The premarket surge followed a bullish research note from J.P. Morgan analysts Harlan Sur and Mayur Ramdhani, who recommended investors become “aggressive buyers at current levels.”

The financial institution maintained its Overweight stance while reaffirming a $580 price objective — representing 54% appreciation potential from Tuesday’s closing price.

Sur highlighted Broadcom’s expertise in cutting-edge chip packaging technology, its robust intellectual property assets, and its proven success with leading technology clients. He emphasized the company’s instrumental role in launching 14 sophisticated chip designs for Google throughout the last dozen years.

The Google collaboration has recently sparked investor anxiety. CEO Hock Tan previously indicated that Google planned to expand its chip supplier network, creating market uncertainty.

J.P. Morgan addressed these concerns directly, clarifying that Google’s next-generation TPU program faces no delays or cancellations, with Broadcom maintaining its production timeline.

The Alphabet partnership spans a decade and encompasses eight successive generations of Google’s Tensor Processing Units.

XPU Revenue Projections from Wall Street

Wolfe Research contributed additional positive momentum Wednesday. The research firm indicated that recent executive discussions suggest Broadcom’s XPU revenue could climb to $250–$300 billion during fiscal 2028. Complete financial backing from hyperscale cloud providers could enable Anthropic and OpenAI XPU capacity to expand threefold, reaching 15 gigawatts.

These substantial projections have helped restore investor sentiment following a challenging period for semiconductor equities.

Tuesday’s market decline extended beyond Broadcom. Nvidia, Micron, AMD, Intel, and Marvell all experienced simultaneous losses in a widespread semiconductor sector downturn. AVGO alone fell 4.4% during that trading session.

Broader economic conditions have added pressure. The FOMC convened its inaugural meeting under new Chair Kevin Warsh, with markets anticipating a hawkish policy direction amid persistent inflation concerns. The Nasdaq declined 1.2% while the S&P 500 retreated 0.6%, making Broadcom’s premarket strength particularly noteworthy.

Analyst Community Maintains Optimistic Long-Term View

Oppenheimer’s Rick Schafer, who carries an Overweight rating and $535 price objective on the stock, characterized recent executive discussions with Broadcom as “bullish.”

Schafer noted that 2026 revenue projections are secured with a “clear line of sight to deployments this year,” and that company leadership anticipates AI-related revenue doubling in the second half compared to the first half.

“We remain long-term buyers,” he stated, while acknowledging that additional upside potential likely extends into 2028.

Broadcom has established a goal of achieving $100 billion in AI chip revenue during 2027. The company currently develops customized semiconductors for six major clients, including Alphabet and OpenAI. While Nvidia maintains its leadership position in AI computing, Broadcom’s custom silicon operations have experienced consistent expansion throughout the AI data center infrastructure build-out.

Despite June’s downturn, AVGO maintains an 11% gain year-to-date and has appreciated 53% over the trailing twelve months. The stock’s 52-week trading range extends from $244.17 to $495.00, with Wednesday’s premarket level of $383.21 positioned considerably below the upper boundary.

Among 55 Wall Street analysts monitored by FactSet, 51 assign the stock a Buy rating, with a median price target of $523.67.

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