Seeking Alpha
08 Oct 2026, 13:45 UTC · 1h ago
Broadcom Is Financing Its AI Moat
Impact · against what's priced in
The news is moderately bullish as the $126.8 billion in purchase commitments provides concrete evidence for the aggressive revenue targets the market currently rejects. While the current AI revenue is already baked in, the specific commitments reduce the risk associated with the $115 billion and $230 billion targets for FY2027 and FY2028.
- AVGO+0.40
Challenges what's priced in
- The price assumes
AI revenue reaching $115 billion in fiscal 2027... and $230 billion in fiscal 2028
The market is not currently paying for AI revenue to hit $115 billion by FY2027 or $230 billion by FY2028; however, the disclosure of $126.8 billion in purchase commitments concentrated in those years provides the structural support necessary to make those declined targets plausible.
What AVGO's price assumes · Sep 9
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