Broadcom Stock Slips Lower as $115 Billion Forecast Raises the Conversion Bar
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Broadcom Stock Slips Lower as $115 Billion Forecast Raises the Conversion Bar Khac Phu Nguyen Mon, September 28, 2026 at 3:35 PM EDT 1 min read AVGO This article first appeared on GuruFocus . Broadcom ( NASDAQ:AVGO ), the custom-chip and infrastructure-software company, raised its fiscal 2027 AI-chip revenue forecast to about $115 billion. Shares slipped roughly 0.7% to $350.10 around 11:51 a.m. ET on September 28. Investors now have a big number to measure against actual chip deliveries. Warning! GuruFocus has detected 3 Warning Sign with AVGO. Is AVGO fairly valued? Test your thesis with our free DCF calculator. The latest quarterly results give that target some weight. AI-chip revenue hit $16.7 billion, up 54% from the previous quarter, while Broadcom expects $21.7 billion in the fourth quarter. Free cash flow reached $13.7 billion, or 46% of total revenue. Even at the fourth-quarter forecast's annual pace of $86.8 billion, Broadcom would need another substantial step up to reach $115 billion next fiscal year. The valuation gap is striking: the $350.10 share price sits 15.48% below GuruFocus' $414.21 GF Value estimate. That discount looks tempting, but the next test is whether customer demand becomes shipped chips and cash.
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