Broadcom’s $580 Price Target Stands Firm as Shares Slide 11%

Broadcom shares slumped more than 10% last week to €321.05, wiping out weeks of gains and leaving the stock roughly 25% below its 52-week high of €429.60 from early June. Yet Wall Street is refusing to flinch. J.P. Morgan raised its price target on the chipmaker to $580 on June 17 — up from $500 — and a survey of 48 analysts by S&P Global still yields a consensus “Strong Buy.” Not a single sell rating exists among them; 36 analysts recommend a strong buy, eight a buy, and four a hold.

The divergence between market action and analyst sentiment is stark. Broadcom’s core business continues to fire on all cylinders. In the second quarter of fiscal 2026, revenue hit $22.2 billion, a 48% year-over-year jump, with free cash flow of $10.3 billion. The company guided for third-quarter revenue of roughly $29.4 billion — an 84% annual increase. A quarterly dividend of $0.65 per share is scheduled for payment on June 30. The problem, as is often the case with high-flying AI plays, is that expectations had already run ahead of even those impressive numbers.

Management opted not to raise its 2027 AI chip revenue forecast in the last earnings report, a decision that sparked selling in a market hypersensitive to any sign of deceleration. Adding to the pressure are concerns about key customer Google, which is reportedly broadening its supply chain and may reduce its reliance on Broadcom’s TPU chips by 2028. Meanwhile, the product mix is shifting toward custom AI accelerators that carry thinner margins than Broadcom’s software segment.

Should investors sell immediately? Or is it worth buying Broadcom?

Behind the scenes, Broadcom has been tidying up its balance sheet. The company increased the size of its bond buyback program to $3 billion this week, tendering for outstanding notes maturing between 2030 and 2038. About $5.5 billion of bonds were offered by creditors, of which Broadcom accepted roughly $2.9 billion. The first settlement was scheduled for June 18. The debt management comes as the company also shoulders leasing liabilities for AI startup Anthropic, adding balance-sheet complexity that will now fall under new CFO Amie Thuener, who took over in June after her predecessor retired.

There are bright spots. Broadcom is co-developing the “Jalapeño” AI chip with OpenAI, underscoring its strategic importance in the custom silicon race. The company’s AI business posted triple-digit percentage growth in the latest quarter. But short-term technical pressure is building: the stock closed last week at €321.05, well below its 50-day moving average of €354.29 and just above the 100-day average of €318.76. The 200-day line at €310.50 marks the next major support. The relative strength index sits at 40.5, signaling oversold conditions but not yet extreme. If that support holds, the pause could prove temporary. A break below it would reignite the debate over whether AI semiconductor valuations have further to fall.