Gary Black Sees Broadcom as Mag 8 Value Play on AI Revenue Growth
Sep 10, 2026, 11:41 AM EDT1 sourcesAI-analyzed
Why it may matterVerify against the original reporting
Valuation gap versus Mag 8 peers combined with strong AI-revenue trajectory and positive commentary from a respected investor could attract buyers and lift AVGO multiples, especially if AI growth remains resilient.
AI summary
What happened, with direct paths to the underlying reporting
Gary Black endorses Broadcom within the Mag 8 framework, noting AVGO trades at a 2026 P/E of 0.9x vs peers' PEGs. AI revenue momentum is highlighted by Q3 results and 2026 guidance, with AI revenue forecast at $58B for FY2026. After a post-earnings dip, the stock has begun to rebound, suggesting a potential re-rating if AI growth sustains.
Gary Black doubles down on Mag 8; AVGO cheapest on 2026 P/E vs forward-PEG at 0.9x.
Q3 AI revenue: $16.7B, +221% YoY; Q4 AI revenue guide: $21.7B, +236% YoY.
Shares recovered to about $361 after the post-earnings drop; still below pre-earnings level.
CEO Hock Tan: AI chip demand exceeds current supply, hinting at possible upside in AI revenue.
AVGO forecasts 2026 AI revenue at $58B, implying strong growth vs peers in Mag 8.
How to read this signal
Transparent limits for an AI-generated research aid
StockNews.AI groups source reporting, classifies the event, and measures subsequent price movement. This is informational research, not investment advice. Prices may be delayed or unavailable.
Related signals
More source-backed signals connected by company or event
AVGO has fallen about 35% from its peak amid AI enthusiasm cooling, yet the article argues its custom AI silicon and networking moat remains durable. Q2 FY2026 AI semiconductor re…
Broadcom CEO Hock Tan labeled AI investors as casino gamblers, triggering a broad semiconductor selloff that weighs on AVGO and peers. CXMT’s claimed DRAM architecture progress he…
News of OpenAI's large AI financing plans raises questions about circular funding and OpenAI's spending trajectory, potentially dampening demand for Broadcom's AI chips in the nea…
Marvell’s Investor Day delivered a long-range revenue reset, guiding 2031 revenue of 70–90B and a TAM of 400B by 2030, with 2028 revenue targeted near 20B. The upbeat outlook spar…