{
  "id": 2349499,
  "title": "Broadcom (AVGO) Is Down More Than 20%—Why TD Cowen Still Sees 27% Upside",
  "url": "https://urgent.news/2026/08/19/broadcom-avgo-is-down-more-than-20-why-td-cowen-still-sees-27-upside",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-08-19T21:49:54.000Z",
  "source": {
    "name": "Yahoo Finance",
    "slug": "yahoo-finance",
    "url": "https://finance.yahoo.com/markets/stocks/articles/broadcom-avgo-down-more-20-214954022.html"
  },
  "original_language": "en",
  "account": "Broadcom Inc. (NASDAQ:AVGO) experienced a significant 20% drop from its June all-time highs, impacted by lofty AI expectations, high valuation, market pressures, Mediatek-driven narrative, and Marvell Technology Inc. (NASDAQ:MRVL). TD Cowen analyst Joshua Buchalter increased his rating to Buy, proposing a $500.00 price target. Q2 2026 saw AI semiconductor revenue grow 143% YoY, exceeding forecasts. The firm forecasts a staggering $16.0 billion AI semiconductor revenue growth YoY, with a $30 billion in AI semiconductor bookings reflecting intense demand. Management is confident in reaching over $100 billion in fiscal 2027 AI semiconductor revenue, which could easily surpass expectations. Broadcom's collaboration with Google to develop future generations of custom AI chips for Google's next-generation AI racks through 2031 is a key driver. However, Mediatek's entry into the TPU program and potential competition from OpenAI's ASIC could pose challenges. Broadcom expects its Q3 consolidated gross margins to decline to approximately 74%, reflecting a product mix between semiconductors and infrastructure software. Insiders show strong confidence, with 173 hedge funds holding Broadcom stock, and limited short interest at 1.31% of the float. Looking ahead to fiscal Q3, Broadcom forecasts revenue growth of 84% YoY to $29.4 billion, AI semiconductor revenue of $16 billion, and a non-GAAP operating margin of 67%.",
  "summary": null,
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}