Goldman Sachs Sees Buying Opportunity in Broadcom Amid Competition Fears

Goldman Sachs recently released a Q2 earnings preview report for Broadcom (AVGO), maintaining a Buy rating and a $525 price target, which is 34% higher than the current $392.

The market has been overly concerned about competition from companies like MediaTek and AMD entering the Application-Specific Integrated Circuit (ASIC) market, but Goldman Sachs believes this anxiety creates a buying window.

Goldman Sachs expects Broadcom's FY2026 AI revenue to be approximately $57 billion, which is in line with market consensus, while its FY2027 AI revenue forecast reaches $133 billion, 12% higher than consensus.

The gap between the expected and actual figures indicates that the market has systematically underestimated Broadcom's competitive landscape for next year.