Rosenblatt's Sajal Dogra Lifts Broadcom Target to $600

Broadcom's latest quarter marked a ninth consecutive EPS beat, and management guided Q4 AI semiconductor revenue to $21.7 billion. The headline Q4 revenue guide was roughly $34.8 billion. Yet the shares drifted lower, and the pullback accelerated after CNBC reported Anthropic had pushed Broadcom to slow the pace of AI capacity deployment, even as Broadcom's chief executive said the underlying AI revenue targets have not changed.

The market's hesitation appears to center on positioning rather than the numbers. Investors are questioning whether the fiscal 2028 AI outlook of $230 billion reflects secured supply more than secured demand, and whether concentration among a handful of hyperscaler customers is a strength or a single point of failure. Broadcom is now the second-largest US semiconductor company by market capitalization at roughly $1.62 trillion, behind only NVIDIA, and its role has shifted to the custom silicon partner of choice for hyperscalers like Google, Meta, OpenAI, and Anthropic.

Rosenblatt's $600 target, based on an 18x P/E applied to a fiscal 2028 EPS estimate, leans on the view that actual end-market demand outstrips guided figures, with real-world revenue bottlenecked by physical data center power, shell readiness, and deployment pace. The outcome likely hinges on whether Anthropic's pace-slowing turns out to be a one-off or a leading indicator, and on whether customer concentration cuts against the company if a few hyperscalers change their capex cadence.