--- title: "'This Could Be Your Chance,' Says Investor as Broadcom Stock Drops" type: "News" locale: "en" url: "https://longbridge.com/en/news/296040982.md" description: "Broadcom (AVGO) stock dropped nearly 6% following reports of hackers exploiting a critical VMware vCenter vulnerability. Despite the security breach, investor 'Millennial Dividends' views this as a buying opportunity, arguing that the incident does not fundamentally alter Broadcom's investment thesis. The investor highlights strong AI semiconductor growth and estimates shares could reach $700-$800 by 2028, assigning a Strong Buy rating. Wall Street consensus also remains bullish with an average price target of $512.87." datetime: "2026-08-17T00:55:43.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/296040982.md) - [en](https://longbridge.com/en/news/296040982.md) - [zh-HK](https://longbridge.com/zh-HK/news/296040982.md) --- # 'This Could Be Your Chance,' Says Investor as Broadcom Stock Drops **Broadcom (NASDAQ:AVGO)** stock ended last week in the red, dropping nearly 6% on Friday after reports that hackers were actively exploiting a critical security vulnerability in the company's VMware vCenter software. ### Summer Sale - Claim 70% Off TipRanks - Unlock powerful investing tools with TipRanks Premium to make smarter, more confident investment decisions - Subscribe to TipRanks Smart Investor Newsletter, and discover new investing opportunities with data-backed stock picks Broadcom disclosed the flaw, known as CVE-2026-59310, on July 29 and released patches to address it. Researchers later confirmed that hackers were exploiting the vulnerability, with compromised systems linked to 361 IP addresses spanning 47 countries. The concern runs deeper than an ordinary software bug, since VMware vCenter serves as the control hub for many corporate virtual environments and manages everything from virtual machines to user permissions. The incident arrives with Broadcom's relationship with some VMware customers already strained following its licensing overhaul. Yet, one investor, who is known by the pseudonym Millennial Dividends (MD) and previously worked as a Fortune 500 financial analyst, believes the latest setback could ultimately create an opportunity for patient buyers. "This is a massive problem for enterprise IT teams," the investor warns, arguing that a breach involving such an important part of the VMware environment deserves to be taken seriously. Still, MD sees a large gap between recognizing the security risk and concluding that Broadcom's investment case has deteriorated. Infrastructure software generated $7.2 billion in fiscal second-quarter revenue, while Friday's selloff erased nearly $120 billion from the company's market value. "In my opinion, Friday's hiccup doesn't fundamentally change AVGO's thesis," says MD. By his calculation, the potential financial consequences look relatively small compared with Broadcom's overall size. MD estimates that even a hypothetical 5% loss of software annual recurring revenue would translate into about $1.5 billion in yearly sales, leaving the potential damage modest compared with the company's expected total revenue. His longer-term outlook rests primarily on Broadcom's semiconductor operation, where growth has accelerated significantly. Semiconductor revenue reached $15 billion in fiscal Q2, while AI semiconductor sales climbed 143% year-over-year to $10.8 billion. "While VMware is a very important part of Broadcom's business, the story is focused on AI semis, and this remains intact," the investor says. The company secured more than $30 billion worth of AI semiconductor bookings during fiscal Q2, compared with $10.8 billion shipped during the quarter, giving MD additional confidence in the strength of future demand. Still, that level of demand has raised expectations considerably, meaning Broadcom will need to deliver on the growth currently reflected in its valuation. MD recognizes that the opportunity comes with little tolerance for disappointment. "The market is pricing in these steep expectations, so the room for error is minuscule," MD cautions. Yet, the investor believes earnings growth could still support attractive returns without requiring today's premium multiple to remain intact indefinitely. "My base case for Broadcom is that the P/E will stay in the future around 25-30x," MD says, estimating that such an outcome could put shares between $700 and $800 by the end of 2028. Taken together, Millennial Dividends believes Friday's market reaction went further than the likely financial consequences justify. "Friday's sell-off, and the general weakness we've seen in the last 1-2 months, is a good opportunity for patient investors to add to their existing position or initiate a new one," MD concludes. Accordingly, MD assigns AVGO shares a Strong Buy rating. (To watch Millennial Dividends' track record, click here) Wall Street appears to share the investor's optimism about Broadcom's longer-term prospects. AVGO earns a Strong Buy consensus rating based on 23 Buys and 4 Holds. The average 12-month price target of $512.87 implies about 30% upside from Friday's closing price of $392.99. 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