Context

Broadcom Inc. ($Broadcom(AVGO.US)) recently posted a blowout Q3 2026 earnings report, with overall revenue surging 86% year-over-year to $29.59 billion. The explosive growth was led by custom AI semiconductors, which skyrocketed 221% to $16.7 billion. Broadcom also vastly raised its long-term guidance, forecasting $115 billion in AI revenue for fiscal 2027 and a staggering $230 billion by 2028. However, the stock experienced a 13.74% pullback over the last month as Wall Street focused on a slight Q4 revenue guidance miss ($34.8 billion vs. $35.1 billion expected) and minor operating margin compression from shifting to full-rack AI systems.

My trade

-Strategy: Scaled in long via equity during the post-earnings dip.

-Entry Target: $360.00 – $362.00 (accumulating right at the current $361.99 support level).

-Stop Loss: $335.00 (just below the recent support floor).

-Price Target: $460.00 (in line with conservative analyst upgrades).

Takeaway

The market is missing the forest for the trees by punishing a minor Q4 guidance discrepancy. Broadcom’s underlying fundamentals are incredibly robust: it holds a highly visible custom XPU pipeline with mega-cap clients (like Alphabet, Meta, and OpenAI) alongside an enterprise software cushion from VMware. With a forward PEG ratio hovering near an attractive 0.4, this short-term correction offers a premier entry point into the structural backbone of global AI infrastructure.