Overview
- Broadcom plunged about 14% in June after an unverified supply‑chain rumor suggested a delay on a Google TPU program, and the stock began to recover following a high‑profile analyst response.
- On Wednesday J.P. Morgan reiterated an Overweight rating, kept a $580 price target and told clients it would be “aggressive buyers,” citing that Google’s TPU v9 program is on track for volume production in 2028.
- Broadcom increased its cash tender offer on June 18 to a $3 billion cap and accepted roughly $2.9 billion of notes, reducing part of its outstanding debt and closing the initial settlement window.
- Wall Street remains broadly bullish with 51 of 55 analysts rating the stock a buy and firms such as Wolfe and Citi projecting large XPU/AI revenue ramps into 2027–2028 if customer programs execute.
- Key risks persist because the business depends on a few hyperscalers, hardware margins are under pressure as the mix shifts to lower‑margin chips, and any real delays in multi‑year custom ASIC programs would test the high valuation.