Wall Street’s biggest bank wants investors to get aggressive on Broadcom. JPMorgan issued a bullish call on the chipmaker Wednesday, maintaining its overweight rating and setting a $580 price target — a figure that implies 54% upside from where the stock closed on Tuesday. Broadcom (Nasdaq: AVGO) has slipped nearly 7% over the past month amid swirling rumors that its next-generation AI chip launch with Google was running behind schedule. JPMorgan analyst Harlan Sur says the market is wrong to sell the dip.
At the center of the bull case is Broadcom’s partnership with Google on custom tensor processing unit (TPU) chips — specifically the forthcoming TPU v9, designed to power the training and inference of large generative AI models. Rumors that the launch was being delayed rattled investors, but Sur says the data tells a different story: the TPU v9 remains on track to debut in 2028, right in line with Broadcom’s original roadmap. Beyond the Google relationship, Sur argues the market is consistently underestimating Broadcom’s overall position in the AI chip space. “We think the market continues to underestimate Broadcom’s significant dominance and lead — an 18-plus month head start — in chip and advanced packaging design leadership, aggressive cadence of new designs, IP portfolio, and track record of execution,” he wrote in a note to clients. As evidence of that track record, Sur pointed out that Broadcom has helped Google bring 14 of its most advanced chip designs to market over the past 12 years — a collaboration few rivals can match. The consensus on Wall Street backs JPMorgan’s view: 47 of the 51 analysts covering Broadcom currently rate it a buy or strong buy, with the stock’s pullback seen as a tactical opportunity rather than a fundamental problem.
For retail investors, the message is fairly clear: Broadcom’s recent weakness has opened a window. The company is not just a chipmaker — it’s a custom silicon specialist with deep design relationships at the largest AI spenders on the planet. Google, which is pouring billions into AI infrastructure, has leaned on Broadcom for over a decade to build purpose-built chips at scale. If the TPU v9 timeline holds, the next 18 to 24 months could see a meaningful re-rating as investors price in the revenue from those chips. With 54% upside to JPMorgan’s target and nearly 92% of covering analysts in the buy camp, AVGO looks like one of the cleaner risk/reward setups in semiconductor stocks right now. The 7% pullback, rather than a warning sign, appears to be the kind of entry point long-term investors wait for.
