THE APEX TIMES
A recent investor letter tied to Buffalo Growth Fund pointed to a gap between how Broadcom’s stock is being priced and what the company’s own targets imply, even as discussion around MediaTek’s AI accelerator plans has drawn attention to the custom-chip opportunity.
Broadcom (AVGO) is trading with a discount in the market, according to a new investor letter released with Buffalo Growth Fund, an actively managed mutual fund advised by Kornitzer Capital Management. The letter, published as part of the fund’s third-quarter 2026 update, draws attention to the contrast between investor sentiment on Broadcom and the outcome implied by management’s stated targets, even as market talk has circulated around MediaTek and its tensor processing unit, or TPU, ambitions.
The letter was distributed via Yahoo Finance and frames the debate around Broadcom’s exposure to AI infrastructure demand. In particular, it references speculation and commentary tied to MediaTek’s potential to deploy TPUs, a type of purpose-built chip designed to accelerate machine-learning workloads such as neural network inference and training. The core point in the investor letter is not that Broadcom’s outlook is being questioned broadly, but that the market appears to be pricing in more downside risk than the company’s targets suggest.
Buffalo Growth Fund’s letter also ties the discussion to how investors interpret the AI supply chain. When firms are assumed to capture incremental share in custom silicon, the market often reassesses existing partners and suppliers. In that kind of environment, any credible sign that a new chip designer could compete for AI accelerator wins can pressure sentiment, and it can also influence what investors expect for gross margins and revenue growth.
Even so, the investor letter argues that management’s targets point to a different baseline. Management targets, in this context, are the company’s forward-looking goals and operational benchmarks that are typically intended to guide how investors should think about revenue, demand, and execution over the relevant planning horizon. The letter’s framing suggests that Broadcom’s near-term valuation may reflect concerns that are not fully aligned with those stated goals.
The investor letter’s release did not provide all of the underlying figures in the Yahoo-hosted item itself, but it indicates that the fund’s managers see the gap as meaningful. That gap, the letter implies, is part of what is driving the “discount” narrative, namely that the company’s execution plan and direction from management are not being fully rewarded in the stock price relative to what the company has told investors it can achieve.
Sector context matters here. In semiconductors and AI hardware, market expectations can shift quickly when a large chip vendor or a major smartphone-and-communications company indicates a new strategy. Broadcom, which is widely followed as a provider of infrastructure software and semiconductors, typically becomes part of those conversations when investors think about which players will supply network, compute, and acceleration components for data center and AI workloads.
What remains unclear from the Yahoo distribution alone is the level of detail behind the “targets” argument. The investor letter is described as being downloadable, and the Yahoo post indicates that the letter can be accessed separately. Without reproducing those internal fund-management details, it is not possible to verify the specific targets cited, the time frame they cover, or how the letter models upside versus the risks implied by MediaTek-related TPU chatter.
For investors and analysts, the next practical question is whether Broadcom provides further clarification or updates that either reinforce management’s targets or change the assumptions embedded in the market’s valuation. In the meantime, the investor-letter debate highlights how AI accelerator rumors can quickly affect sentiment, while management targets can serve as an anchor that some long-term investors use to argue the valuation is too conservative.
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