If This Wall Street Call is Right, Broadcom Stock Just Became a Historic Buy Opportunity

The analyst community is decisively bullish on Broadcom (NASDAQ:AVGO | AVGO Price Prediction) stock, and the post-earnings sell-off hasn’t shaken the conviction of Wall Street’s experts. 44 of 48 analysts covering AVGO stock have assigned it a Buy or Strong Buy rating and none of them issued a Sell rating. Plus, there’s a fresh and aggressive bullish call out of Mizuho built on application-specific integrated circuit (ASIC) channel checks. Clearly, Wall Street is treating Broadcom stock’s weakness as a setup rather than a warning.

The signal is sharpened by Mizuho’s projection that Broadcom’s tensor processing unit (TPU) shipments could reach more than 35 million units in 2028, roughly 8x the firm’s 2026 estimate of about 4.3 million and well above 2025’s roughly 2.4 million. (Mizuho’s note can be read here.) If that channel work proves to be accurate, the current pullback in Broadcom stock looks less like a top and more like a setup for a much larger 2027 to 2028 cycle.

Three Data Points Behind the Bullish Frame

First, the consensus 12-month price target on Broadcom stock sits at $517.61, against a current quote near $399.98. That gap is meaningful because the target was set largely before management’s blockbuster Q3 FY2026 guide, which projected consolidated revenue of roughly $29.4 billion and AI semiconductor revenue of $16 billion, up over 200% year-over-year.

Second, investor positioning is heavy and sticky. Institutions hold 80% of Broadcom’s float, and the firm’s eighth consecutive EPS beat keeps Broadcom on the short list of large-cap AI names institutions are unlikely to abandon on a single earnings reaction.

Third, the Mizuho note adds hard numbers to that conviction. The firm flags a cumulative potential of about 50 million TPU shipments across 2026 to 2028 and frames OpenAI’s ramp as the swing catalyst, asserting, “We believe OAI ASIC is in development with 10GW AVGO project (Nexus) adding to TPU/MTIA/ARM roadmap.” Mizuho’s revenue scenario suggests that even at a 60% TPU share, Broadcom could see roughly $300 billion in revenue from Alphabet‘s (NASDAQ:GOOGL) Google plus another $300 billion from the Apollo and Blackstone partnership.

The Gap Between Wall Street and the Tape

The disconnect is the story. Broadcom stock has fallen sharply from the $495 level at the June 3 Q2 FY2026 filing, even though the company reported record revenue of $22.187 billion, up 48% year-over-year, and AI semiconductor revenue of $10.8 billion, up 143%. Our June 3 live earnings blog previewed the path to $100 billion in AI chip revenue in 2027 and flagged CEO Hock Tan’s comment that “We expect OpenAI to deploy their first-generation XPU in volume in 2027 at over 1 gigawatt of compute capacity,” the exact thread Mizuho is now pulling on.

Reddit sentiment captures the dislocation cleanly. Sentiment scores cratered to 10 on Friday, June 5 at 3 a.m. ET as retail traders posted losses, then snapped back to 65 by Monday, June 8 at 12 a.m. ET as the “buy the dip” narrative took hold. That kind of whipsaw is typical of large earnings reports in AI names, and it tends to mask what the larger institutional book is doing.

The Takeaway for Retail Investors

Evidently, Wall Street believes that Broadcom is in the early innings of an ASIC and AI networking super-cycle, and the post-earnings drop in Broadcom stock represents a re-rating opportunity implied in Mizuho’s projections. The bullish case hinges on Tan’s guidance for AI semiconductor revenue to double in the second half of 2026 from the first half, alongside roughly 10 gigawatts of shipments in 2027 tied to Google, OpenAI, Meta Platforms (NASDAQ:META), and Anthropic.

The risks shouldn’t be overlooked, though. Mizuho’s more than 35 million TPU shipments in 2028 figure is a forecast, not a commitment, and Broadcom carries customer concentration, semiconductor cyclicality, and significant indebtedness. Ultimately, Broadcom’s forward P/E ratio of 34x still demands execution.

Investors weighing their AVGO stock exposure can frame the decision around whether they trust the Mizuho thesis enough to size into a name that’s already up 59% over the past year. If the call is right, the current weakness in Broadcom is the entry that the bulls have been waiting for. Should it prove wrong, however, the stock could have further to fall before the multiple resets.