I lean towards buying the pullback gradually rather than waiting for expectations to collapse.
The $200m Q4 revenue miss matters because AVGO is priced for near-perfect execution, but the underlying AI story actually strengthened. AI semiconductor revenue hit $16.7bn, +221% YoY, with Q4 expected to accelerate to $21.7bn. More importantly, Broadcom now sees ~$115bn of AI semiconductor revenue in FY2027 and says demand exceeds that outlook.
That makes the sell-off look more like a valuation reset than a thesis break. The warning from Credo is still important: at elevated multiples, beats are expected and margins/guidance determine the reaction.
I would not chase AVGO immediately after the drop, but I also would not wait for a perfect entry. Scale in if weakness continues. The bigger question is whether that $115bn FY2027 target converts into earnings and cash flow without margin deterioration.
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