Wall Street Expects Broadcom Inc (AVGO) to Grow EPS By More Than 50% Over the Next 5 Years, Should You Invest?

1 hour ago 1

Talha Qureshi

Wed, June 10, 2026 astatine 12:15 PM CDT 2 min read

The shares of Broadcom Inc. (NASDAQ:AVGO) person fallen much than 20% since the institution reported its fiscal Q2 2026 results. However, analysts expect the institution to turn its EPS by much than 50% implicit the adjacent 5 years, making it 1 of the Top 10 Unstoppable Growth Stocks to Invest In.

According to a June 4 study by Reuters, the selloff was triggered by results that fell abbreviated of elevated expectations. Second-quarter gross of $22.19 cardinal missed Wall Street estimates. More importantly, the institution chose to reiterate, alternatively than raise, its $100 cardinal AI gross forecast for fiscal 2027, which disappointed investors who had priced successful an upgrade. Moreover, the AI spot income forecast of $16 cardinal besides came successful somewhat beneath expert expectations. The diminution successful banal terms comes contempt the AI spot income representing much than a threefold summation from astir $5.2 cardinal a twelvemonth ago.

Broadcom plays a captious relation successful designing customized in-house processors for large clients similar Alphabet and Meta, positioning it arsenic a cardinal alternate to Nvidia. The banal has gained much than 57% implicit the past 12 months, adjacent aft the caller 20% loss. According to the report, the results dragged the broader spot assemblage lower. Marvell fell astir 5%, portion AMD, Intel, Micron, and Qualcomm dropped betwixt 1.6% and 6.5%. Moreover, contempt the selloff, astatine slightest 22 analysts raised their terms targets connected Broadcom, pushing the median to $500.

Broadcom Inc. (NASDAQ:AVGO) is simply a planetary exertion institution that designs, develops, and supplies semiconductor products, endeavor software, and information solutions. The institution operates done 2 concern segments: semiconductor solutions and infrastructure software.

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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