Overview
- J.P. Morgan reiterated an Overweight rating on Broadcom and raised its price target to $580, telling clients on June 17 that they should be “aggressive buyers” and arguing Google’s TPU v9 program remains on track for volume production in 2028.
- The firm pointed to a five‑year agreement with Google that it says secures Broadcom’s role across multiple TPU generations and provides revenue visibility through 2031.
- Broadcom’s stock fell about 14% earlier in June and then recovered after the June 17 notes, with analysts’ public rebuttals of an unconfirmed Google delay cited as a key trigger for the bounce.
- Broadcom has taken active balance‑sheet steps this month by raising its cash tender cap to $3 billion and accepting roughly $2.9 billion of notes, and it has participated in a large AI infrastructure financing effort intended to support hyperscaler deployments.
- Analysts offer sharply different revenue scenarios — including Wolfe Research’s projection that XPU revenue could reach $250–$300 billion by fiscal 2028 — but the shares remain sensitive to execution timing, margin mix shifts from hardware growth, and concentration of demand among a few hyperscaler customers.