Broadcom’s AI-fueled quarter clashes with a sharp selloff, raising debate on whether AVGO can reclaim $500

Broadcom (NASDAQ:AVGO) is facing a familiar tension in the AI infrastructure trade. The company posted what one widely circulated market analysis called a strong quarter, yet the stock still suffered one of the steeper post-earnings drops of the current cycle, falling 13.78% over a single week. The move has intensified speculation about whether the selloff was temporary dislocation or an early announcement that expectations are outpacing delivery.

In the quarter referenced by 24/7 Wall St., Broadcom reported revenue of $22.19 billion and non-GAAP earnings per share of $2.44, which the article characterized as an eighth straight EPS beat. Revenue growth was described as 47.87%, while the company’s AI semiconductor revenue jumped 143% year over year to $10.80 billion. The analysis also said free cash flow reached $10.26 billion, equivalent to 46% of revenue, a profitability marker investors often watch for megatrend semiconductor stories.

The market reaction appears to have centered on forward-looking guidance rather than results. 24/7 Wall St. said Broadcom closed at $495 on June 3, 2026, the day it filed Q2 results, then dropped 12.59% after traders reacted to what the article characterized as light AI guidance for Q3. According to the same account, Broadcom traded around $396.60 as of June 8, 2026, and was down 7.77% over the past month, while still up 14.82% year to date and 61.9% over the past year.

Still, the bullish case in the 24/7 Wall St. piece leans heavily on AI demand growth. The article quoted CEO Hock Tan guiding Q3 AI revenue to $16 billion, calling for growth of “over 200 percent year-over-year.” It also referenced a broader AI revenue target, saying Tan has publicly targeted exceeding $100 billion in AI sales by 2027. Those figures matter because Broadcom’s results increasingly depend on data-center and accelerator-related spending, where customer buildouts can drive fast revenue ramps but also lead to volatile quarter-to-quarter expectations.

On valuation, 24/7 Wall St. put a price target for Broadcom at $503.61, implying 26.98% upside from the $396.60 level it cited, over the next 12 months. The publication also assigned a “buy” stance with a 90% confidence level. The same write-up cited specific Street views that were described as supportive: Mizuho modeling a $600 billion-plus revenue opportunity tied to Google’s TPU buildout by 2028, and Bank of America pointing to a $530 price target based on a 48% year-over-year revenue increase.

There are, however, limits to what can be concluded from this single market-news commentary. Broadcom did not disclose additional detail about the specific drivers behind the alleged “light” guidance in the excerpt provided here, and the analysis did not include the company’s full guidance language or any reconciliation of what changed between the quarter and the outlook. The post also referenced insider transactions skewing to selling, but it did not provide specifics in the excerpt about transaction dates, sizes, or whether any sales were part of preset plans.

For investors, the next checkpoints are likely to be less about whether Broadcom can post strong numbers in absolute terms and more about whether AI revenue growth sustains at the pace implied by management’s targets. Watching the next quarterly guidance and segment-level AI semiconductor demand could help clarify whether the recent drop reflected one quarter of expectation reset or a broader shift in how the market prices AI accelerator-related spending.