Recent market volatility has pulled Broadcom’s stock price down from its recent peak, but financial experts view this pullback not as a warning sign, but as a potential entry point. As the share price corrects, institutional investors are adjusting their portfolios and equity researchers are publishing bullish price targets that suggest substantial growth ahead. Is the semiconductor leader currently trading at a significant discount?
Unwavering Confidence from Wall Street
A fresh analysis from J.P. Morgan has captured market attention. The firm’s analyst, Harlan Sur, reaffirmed an “Overweight” rating on Broadcom and established a price target of $475 per share. This projection indicates a potential upside of more than 40% from current trading levels.
The core of this bullish outlook rests on Broadcom’s commanding position in the custom chip (ASIC) segment. Sur specifically highlighted the company’s deep collaboration with Google, projecting that Broadcom will maintain a 95% share of Google’s Tensor Processing Unit (TPU) market through 2027. This dominance is expected to be driven by the upcoming 3-nanometer ‘Sunfish’ ASIC, which is forecast to accelerate revenue growth to approximately 57% in fiscal 2026.
Major Investors Are Accumulating
While retail investors may be cautious amid recent price swings, substantial buyers are using the opportunity to build positions. Recent regulatory filings reveal notable purchases by institutional funds:
- Waldron Private Wealth increased its existing holding by nearly 28%.
- Ninety One North America initiated a brand new position, acquiring over 40,000 shares.
- Coatue Management has been identified as a consistent buyer over recent quarters.
Market observers interpret this accumulation as a strong vote of confidence in the company’s long-term roadmap. These institutional buys are currently being given more weight by the market than recent insider sales by Director Henry Samueli.
Should investors sell immediately? Or is it worth buying Broadcom?
AI Infrastructure Demand Provides a Solid Foundation
The fundamental driver for this optimism is the relentless expansion of artificial intelligence infrastructure. According to forecasts from Counterpoint Research, Broadcom is positioned to control about 60% of the AI server ASIC market by 2027. This leadership is backed by concrete figures: CEO Hock Tan recently quantified the company’s AI-specific order backlog at roughly $73 billion.
This situation clearly differentiates Broadcom from competitors like Intel, which are grappling with structural challenges. Broadcom benefits directly from massive supply agreements with technology giants such as Meta and Google, providing fundamental support for the equity’s valuation.
Key Data Points:
- Current Share Price: $327.96
- Daily Change: -0.66%
- 52-Week High: $354.61
- 12-Month Performance: +70.10%
- J.P. Morgan Price Target: $475.00
Following the decline below the $330 level, investors are now watching for signs of a price floor. The combination of a robust order book and strong analyst conviction could provide near-term support for the share price, provided technical support levels hold.
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