X discussionBroadcom printed $16.7B of AI semiconductor revenue, up 221% YoY, then sold off when Q4 total revenue guided to about $34.8B versus roughly $35B on the Street. The stock lagged NVDA and TSM into the week, then bounced about 4% as traders argued whether the dip was an overreaction or proof that AI multiples now demand near-perfect prints. That fight matters because AVGO sits at the center of custom AI silicon demand and the next move decides if the post-earnings flush is a buy or a trap.
BullThe guidance dip is a gift into accelerating AI demand. Management laid out about $115B of AI revenue in FY27 and about $230B in FY28, and a clean break of $375–$380 opens a path to $400.
BearThe bar is now perfection for Broadcom. A sub-1% Q4 guide miss drove a roughly 6% selloff, and the CFO already flagged Q4 gross margin near 73%, down from 78%, as XPU memory mix dilutes the print.
Posts
Bull evidence
@Mr_DerivativesAVGO is the TSM/NVDA laggard and still wants $400.
@Mr_DerivativesAVGO +4%; break $375–$380 and $400 is automatic.
@FinanceJack44Hit FY28 EPS of $30 at 20x and AVGO is a $600 stock.
Bear evidence
@TheTranscript_CFO: rising AI/XPU mix pushes Q4 gross margin to ~73% from 78%.
@LongGameEquityInsane AI quarter still sold off on a soft $34.8B Q4 guide vs ~$35B Street.
@TradexWhispererJensen's COT path means hyperscalers eventually cut Broadcom-style ASIC turnkey margins.