Broadcom Slides on Disappointing Results as Wall Street Splits on Valuation

Broadcom shares dropped after the chipmaker's latest results disappointed investors, one of the factors moving broader markets alongside a pullback in oil prices. The stock's fall came despite Broadcom's central role in the AI buildout that has driven chip stocks higher this year. Analysts responded with sharply different views. Bernstein raised its price target to $575, citing continued AI-driven growth, while TD Cowen cut its target to $475, pointing to valuation concerns after the stock's run-up. The gap between the two targets, roughly $100, shows how divided analysts are on whether Broadcom's AI exposure still justifies its price. What remains unresolved is whether the disappointment reflects a one-time miss or a broader slowing in AI-related chip demand. The next earnings report will be the clearer test of which analyst camp was right.