Melius Research cuts Broadcom price target to $450 from $610

The reported reduction trims one of Wall Street's more bullish calls on the AI chipmaker after a steep slide from its mid-2026 highs Melius Research has lowered its price target on Broadcom to $450 from $610, according to a post circulating on X. That is a cut of more than a quarter from a target that was among the more aggressive on the Street. From $610 to $450 The original $610 target came from Melius analyst Ben Reitzes in October 2026. His thesis centered on Google, one of Broadcom’s most important customers. Reitzes pointed to Google’s anticipated surge in AI infrastructure spending, projected to reach $352 billion in 2027. That figure represents a 75% increase from earlier 2026 estimates. Put simply, if Google builds a lot more data centers, Broadcom sells a lot more chips. Broadcom helps design Google’s custom tensor-processing units, or TPUs. These are specialized chips built to run AI workloads, rather than general-purpose processors adapted for the job. That relationship is a big part of why Broadcom became an AI darling. Concerns have surfaced around whether Google might diversify its TPU suppliers, which would shrink Broadcom’s slice of that spending pie. Melius has no...