Why Mizuho Wants to Own Broadcom (AVGO) Stock Right Before Earnings
TLDR
- Mizuho analyst Jordan Klein is bullish on Broadcom ahead of its September 2 earnings, calling the selloff a contrarian buy opportunity at around $370
- Broadcom has not posted back-to-back down earnings reactions in nearly 30 quarters, roughly seven years
- The main bear case is that Google’s in-house ASIC chip development will cut into Broadcom’s hyperscaler revenue
- Cathie Wood’s ARK Invest bought about $20.6 million of Broadcom stock while selling roughly $18.2 million of AMD
- Broadcom historically moves 2 to 3 times more than NVIDIA following earnings, making the September 2 print a high-stakes event
Broadcom stock has dropped mid-teens over the past two weeks, and Mizuho TMT Sector Specialist Jordan Klein thinks that selloff has created an opening. With earnings due September 2, he is flagging what he sees as an asymmetric setup around $370.
The core of his argument is sentiment. Klein says the positioning on AVGO right now is the “total opposite” of where it stood 90 days ago, when the stock headed into early June earnings with strong momentum and then fell around 12% in a single day after a soft guide.
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