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Broadcom Valuation Attractive After Earnings Drop

By Stocks Desk · 2026-09-10 · Updated 2026-09-11 10:26 UTC
A close-up of a silicon wafer with a grid pattern
Illustration: Tradingbird

Broadcom shares have slipped below pre-earnings levels despite robust AI growth, creating a valuation gap that Morningstar views as an opportunity. The firm’s 5-star rating and $650 fair value estimate are underpinned by credible 2028 targets, including a quadrupling of AI revenue driven by new major clients like OpenAI and Anthropic.

  • Morningstar analysts from GN markets/earnings (en-US) maintain a $650 fair value estimate for Broadcom, arguing that the recent price drop creates a significant discount relative to strong 2028 guidance that projects AI revenue quadrupling. They highlight that massive upcoming revenue ramps from OpenAI and Anthropic are expected to diversify the client base beyond Google, supporting the view that the stock remains a bargain despite the 3% post-earnings decline.

    Source: GN markets/earnings (en-US)

  • Broadcom shares traded below pre-earnings levels despite AI revenue growth, creating a valuation gap compared to other tech giants.

    Source: GN stocks/nasdaq
Based on reporting by GN stocks/nasdaq and GN markets/earnings (en-US), compiled by the Tradingbird desk.

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