**Broadcom Stock Performance Declines Amid Analyst Downgrade**
Broadcom Inc. (NASDAQ: AVGO) experienced a minor decline of 0.2% in its stock price on Monday following an analyst downgrade. RBC Capital analyst Srini Pajjuri reduced his price target for Broadcom from $370 to $340 per share, while maintaining a “sector perform” rating. This adjustment comes ahead of the company’s upcoming first-quarter fiscal 2026 results, scheduled for after-market close on Wednesday.
Despite the downgrade, Pajjuri is optimistic about Broadcom’s prospects, particularly in relation to demand for its tensor processing units (TPUs) for Alphabet’s Google. However, concerns were raised regarding Broadcom’s partnership with AI developer Anthropic, which may see reduced demand post-2027. Currently, Broadcom’s stock trades at a roughly 25% premium compared to Nvidia, the leading AI chip manufacturer.
