Wall Street Expects Broadcom Inc (AVGO) to Grow EPS By More Than 50% Over the Next 5 Years, Should You Invest?

The shares of Broadcom Inc. (NASDAQ:AVGO) have fallen more than 20% since the company reported its fiscal Q2 2026 results. However, analysts expect the company to grow its EPS by more than 50% over the next 5 years, making it one of the Top 10 Unstoppable Growth Stocks to Invest In.

​According to a June 4 report by Reuters, the selloff was triggered by results that fell short of elevated expectations. Second-quarter revenue of $22.19 billion missed Wall Street estimates. More importantly, the company chose to reiterate, rather than raise, its $100 billion AI revenue forecast for fiscal 2027, which disappointed investors who had priced in an upgrade. Moreover, the AI chip sales forecast of $16 billion also came in slightly below analyst expectations. The decline in stock price comes despite the AI chip sales representing more than a threefold increase from approximately $5.2 billion a year ago.

​Broadcom plays a critical role in designing custom in-house processors for major clients like Alphabet and Meta, positioning it as a key alternative to Nvidia. The stock has gained more than 57% over the past 12 months, even after the recent 20% loss. According to the report, the results dragged the broader chip sector lower. Marvell fell nearly 5%, while AMD, Intel, Micron, and Qualcomm dropped between 1.6% and 6.5%. Moreover, despite the selloff, at least 22 analysts raised their price targets on Broadcom, pushing the median to $500.

​Broadcom Inc. (NASDAQ:AVGO) is a global technology company that designs, develops, and supplies semiconductor products, enterprise software, and security solutions. The company operates through two business segments: semiconductor solutions and infrastructure software.

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