JPMorgan Says Be an 'Aggressive Buyer' of This Beaten-Down AI Stock

JPMorgan advises investors to be 'aggressive buyers' of Broadcom (AVGO) after the stock dropped about 22% following record financial results. The stock fell from $495 to $385.73 despite record revenue of $22.19 billion.

Recommendation Change

JPMorgan's recommendation comes after Broadcom (NASDAQ: AVGO) experienced a sharp decline following its Q2 FY2026 earnings release. Analysts at the bank describe the stock as a 'strong buying opportunity' at current levels.

Analyst Rationale

JPMorgan believes the sharp decline in Broadcom's stock does not reflect the strength of its fundamentals. The company reported record revenue of $22.19 billion on June 3, 2026, beating consensus estimates on both revenue and earnings. It also raised its forward guidance, indicating continued strong demand for its AI products.

Context

Despite the strong performance, Broadcom's stock fell about 22% in the week following the announcement, closing at $385.73. Other chip stocks also declined. While other analysts have mixed views, JPMorgan sees the stock as undervalued.

What to Make of It

JPMorgan's recommendation reflects a positive long-term view of Broadcom, especially with sustained demand for AI solutions. However, investors should assess sector volatility risks before making decisions.