Hello, Thanks for signing up for MarketBeat Daily Ratings—we’re excited to have you on board. Every weekday, you’ll get a curated summary of new “Buy” and “Sell” ratings from Wall Street’s top-rated analysts, the latest stock news, and bonus investing content—all delivered straight to your inbox. You’re just two quick steps away from completing your sign-up: 1. Make sure our emails go to your inboxGmail users:
Mobile: Tap the three dots (…) in the top right and select Move to Inbox or Move to Primary
Desktop: Click the folder icon at the top and select Move to Inbox or Primary Apple Mail users:
Tap our email address at the top (next to From: on mobile), then select Add to VIP Other providers:
Reply to this message and add newsletters@analystratings.net to your contacts 2. Confirm your subscriptionClick this link to confirm your subscription. This verifies your account and ensures you receive your newsletters without interruption instead of getting stuck in your spam filter. Confirm your subscription here. After you confirm, feel free to download our popular free report, "7 Stocks to Buy and Hold Forever" with this link. Thanks again for subscribing—we look forward to being part of your investing journey. 
Matthew Paulson
Founder and CEO, MarketBeat. P.S. If you didn’t mean to subscribe, no problem—you can unsubscribe here.
Special Report
Broadcom & Meta Extend AI Pact Into 2029 as Shares Climb to $400Written by Leo Miller. Article Posted: 4/21/2026. 
Key Points
- Broadcom is back up from its lows, expanding several key AI partnerships along the way
- Broadcom received its latest AI expansion from Meta Platforms, with the companies set to collaborate on custom chips through 2029
- As Broadcom hits $400 again, its forward P/E ratio is down substantially, a positive sign going forward
- Special Report: Elon Musk already made me a “wealthy man”
After falling more than 25% to below $300 per share, semiconductor giant Broadcom (NASDAQ: AVGO) has staged a sizable recovery. Now trading near $400, the stock is up more than 10% in 2026 and has rebounded over 30% from its 2026 lows. In early April, Broadcom expanded its artificial intelligence (AI) chip partnerships with Google parent company Alphabet (NASDAQ: GOOGL) and Anthropic, jolting the stock. About a week later, Broadcom announced an expanded partnership with another major customer: Meta Platforms (NASDAQ: META).
Importantly, amid these deals and the stock's return to $400, Broadcom’s forward price-to-earnings (P/E) ratio has fallen considerably as analysts raised forward earnings estimates. That reduction in valuation risk makes a repeat of the late-2025/early-2026 drawdown less likely. Meta and Broadcom Work on 2nm AI Chips, Extend Partnership Through 2029With their latest announcement, Broadcom and Meta confirmed their business relationship will continue for years. The firms will collaborate on future generations of Meta’s custom AI chips over the next three years, extending the partnership through 2029. While the relationship was already long-standing, the formal extension provides greater visibility for Broadcom. Broadcom and Meta say they will roll out the world’s first two-nanometer (2nm) AI accelerator, a notable technological milestone. Lower nanometer processes are often shorthand for more advanced chips, signaling that Meta and Broadcom are working on the cutting edge of AI hardware. Still, nanometers are just one factor determining how powerful a chip and its surrounding system are. In light of the deal, Broadcom CEO Hock Tan will not seek re-election to Meta’s Board of Directors. Price Targets Hold Steady Amid Meta AnnouncementThe companies say their initial commitment exceeds one gigawatt (GW) and is the first phase of a multi-GW rollout. That aligns with Broadcom’s past statements about Meta from its most recent earnings call. Analysts use GWs to describe the scale of data center deployments; a multi-GW partnership with Meta carries meaningful financial implications for Broadcom. Bernstein analyst Stacy Rasgon estimates the company generates roughly $20 billion in revenue per GW. Broadcom and Meta’s partnership also extends beyond custom AI processors into networking components, including Ethernet switches that route data and enable communication between processing chips. While Broadcom’s XPUs attract much attention, networking is a significant part of its AI business. For the next quarter, Broadcom expects total AI revenue to rise 76% year over year (YOY) to $14.8 billion, with roughly 40% coming from networking—implying about $5.92 billion in networking sales. On the day of the Meta announcement, Broadcom shares climbed approximately 4.2%. MarketBeat has not tracked any Wall Street analysts updating their price targets since then, in part because much of the news was already anticipated. Still, the confirmation that Meta and Broadcom’s relationship extends through 2029 is a constructive development. Despite the lack of immediate target upgrades, analysts remain broadly bullish on Broadcom. The MarketBeat consensus price target for AVGO sits near $435, implying slightly less than 10% upside. Targets updated after Broadcom’s most recent earnings report are considerably more optimistic, averaging about $489 and implying more than 20% upside; those updated targets range from $450 to $545. Financials and Outlook Catch Up: Broadcom’s Forward P/E Tanks Despite Return to $400Investors who followed Broadcom last time shares traded near $400 will recall early December 2025, when the stock closed at an all-time high of $411. After that peak, Broadcom fell roughly 29% through late March, a drop that still colors investor sentiment as the stock approaches similar levels again. There is one key difference between Broadcom’s $400 today and its $400 in December 2025: valuation. In December, the stock’s forward P/E hovered around 47x–49x. Today, AVGO’s forward P/E is roughly 30x. That change reflects significant improvements in Broadcom’s financials and outlook. The stock now trades at a similar price but with substantially higher expected earnings, producing a decline in forward P/E of more than 30%. In short, the current price is better supported by near-term fundamentals, making a repeat of the prior sharp sell-off less likely. The stock’s ~30x forward P/E is also only slightly above its three-year average of 29x. |
Post a Comment
Post a Comment