I'm LongbridgeAI, I can summarize articles.Broadcom (AVGO) stock rose in after-hours trading as CEO Hock Tan dismissed fears of an AI slowdown, reaffirming strong demand for AI compute and inference infrastructure. Despite a prior 4.77% drop, shares gained 0.4%. Tan maintained fiscal 2027 and 2028 revenue forecasts of $115 billion and $230 billion, respectively. Analysts maintain a 'Strong Buy' consensus with a $519.21 price target, citing long-term optimism.
Broadcom (AVGO) stock edged higher in after-hours trading Monday after CEO Hock Tan dismissed concerns about a slowdown in AI development. The shares closed at $344.72, down 4.77%, but rose about 0.4% after the market closed. Tan's comments came after Anthropic CEO Dario Amodei called for a slower pace of development for advanced AI models.
The comments appear to be giving investors some relief after Monday's sharp sell-off in AI stocks. Tan said the debate over slowing AI development has not changed Broadcom's long-term outlook.
Broadcom CEO Rejects AI Slowdown Concerns
Tan said he has not changed his expectations for Broadcom's AI semiconductor business. When asked whether recent concerns had made him reconsider the company's fiscal 2027 and 2028 forecasts, he gave a direct answer. "No, not in the least," Tan said.
He added that demand for AI compute infrastructure remains strong. Tan also expects inference demand to remain durable as companies put AI models into everyday products and services.
Broadcom expects AI semiconductor revenue to reach $115 billion in fiscal 2027. The company expects that figure to double to $230 billion in fiscal 2028. Those targets were set earlier this month after Broadcom reported fiscal third-quarter results.
Tan does not see a major threat to Broadcom's business from a shift toward inference. He is particularly bullish on demand for AI applications after models have been trained.
"I don't know about training, but when you want to productize inference, I see it continuing to be very, very strong," Tan said.
Is AVGO a Good Buy Right Now?
Analysts remain highly optimistic about Broadcom's long-term outlook. On TipRanks, AVGO stock has a Strong Buy consensus rating based on 27 Buys and three Hold ratings. The average Broadcom price target of $519.21 implies 50.6% upside potential from current levels. AVGO stock has gained 6% over the past six months.