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

neutralAnalyst ratingMulti dayYahoo Finance ·10 Jun 2026Original article ↗
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While the piece is partly promotional and centered on long-term growth expectations, it also references the recent results/guidance disappointment that drove the stock down, making it relevant for near-term trading sentiment and positioning.

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Wall Street Expects Broadcom Inc (AVGO) to Grow EPS By More Than 50% Over the Next 5 Years, Should You Invest? Talha Qureshi Wed, June 10, 2026 at 7:15 PM GMT+2 2 min read AVGO The shares of Broadcom Inc. (NASDAQ: AVGO ) have fallen more than 20% since the company reported its fiscal Q2 2026 results.

However, analysts expect the company to grow its EPS by more than 50% over the next 5 years, making it one of the Top 10 Unstoppable Growth Stocks to Invest In . ​According to a June 4 report by Reuters, the selloff was triggered by results that fell short of elevated expectations. Second-quarter revenue of $22.

19 billion missed Wall Street estimates. More importantly, the company chose to reiterate, rather than raise, its $100 billion AI revenue forecast for fiscal 2027, which disappointed investors who had priced in an upgrade. Moreover, the AI chip sales forecast of $16 billion also came in slightly below analyst expectations.

The decline in stock price comes despite the AI chip sales representing more than a threefold increase from approximately $5. 2 billion a year ago. ​Broadcom plays a critical role in designing custom in-house processors for major clients like Alphabet and Meta, positioning it as a key alternative to Nvidia.

The stock has gained more than 57% over the past 12 months, even after the recent 20% loss. According to the report, the results dragged the broader chip sector lower. Marvell fell nearly 5%, while AMD, Intel, Micron, and Qualcomm dropped between 1.

6% and 6. 5%. Moreover, despite the selloff, at least 22 analysts raised their price targets on Broadcom, pushing the median to $500.

​Broadcom Inc. (NASDAQ:AVGO) is a global technology company that designs, develops, and supplies semiconductor products, enterprise software, and security solutions. The company operates through two business segments: semiconductor solutions and infrastructure software.

While we acknowledge the potential of AVGO as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the   best short-term AI stock . READ NEXT:  9 Most Undervalued Foreign Stocks to Buy Now  and  10 Most Undervalued US Stocks According to Hedge Funds .

  Disclosure: None.   Follow Insider Monkey on Google News .

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