Nasdaq Growth Stocks Present Buying Opportunities Post-Sell-Off
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 25 2026
0mins
Source: Fool
- Market Rebound Opportunity: Following last month's sell-off, Nasdaq growth stocks have nearly universally rebounded from their lows at the end of March, indicating strong market momentum and providing investors with opportunities to participate in future growth.
- Microsoft Valuation Potential: Microsoft (MSFT) is currently over 20% below its all-time high, having dropped as much as 34% at its lowest point, and its operating profit valuation suggests significant room for upside, attracting investor interest.
- AI-Driven Growth: Nvidia (NVDA) and Broadcom (AVGO) are thriving due to AI chip manufacturing, with Nvidia expected to achieve $1 trillion in cumulative orders by 2027, showcasing immense growth potential in the coming years.
- Long-Term Investment Outlook: Despite a recent 20% to 30% price increase, Broadcom and Nvidia's long-term growth potential remains substantial, with expectations of doubling stock prices over the next two years, and when combined with Microsoft's undervaluation, these three stocks are poised to significantly outperform market indices.
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Analyst Views on AVGO
Wall Street analysts forecast AVGO stock price to fall
30 Analyst Rating
29 Buy
1 Hold
0 Sell
Strong Buy
Current: 479.230
Low
370.00
Averages
457.75
High
525.00
Current: 479.230
Low
370.00
Averages
457.75
High
525.00
About AVGO
Broadcom Inc. is a global technology firm that designs, develops, and supplies a range of semiconductors, enterprise software and security solutions. The Company operates through two segments: semiconductor solutions and infrastructure software. Its semiconductor solutions segment includes all of its product lines and intellectual property (IP) licensing. It provides a variety of radio frequency semiconductor devices, wireless connectivity solutions, custom touch controllers, and inductive charging solutions for mobile applications. Its infrastructure software segment includes its private and hybrid cloud, application development and delivery, software-defined edge, application networking and security, mainframe, distributed and cybersecurity solutions, and its FC SAN business. It provides a portfolio of software solutions that enable customers to plan, develop, automate, manage and secure applications across mainframe, distributed, mobile and cloud platforms.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Broadcom's Q2 Earnings Report Triggers Stock Plunge
- Stock Plunge: Broadcom (AVGO) shares fell over 14% post-earnings, erasing nearly $300 billion in market value, reflecting a market reevaluation of AI semiconductor growth expectations, which led to declines across the semiconductor sector.
- Strong Earnings Report: For Q2, Broadcom reported revenue of $22.19 billion, a 48% year-over-year increase, surpassing the consensus estimate of $22.13 billion, with adjusted EPS at $2.44, exceeding the $2.39 forecast, underscoring the company's pivotal role in AI infrastructure development.
- Conservative AI Revenue Outlook: Management projected Q3 AI chip revenue at approximately $16 billion, indicating significant growth but falling short of the market's consensus expectation of $17.2 billion, which dampened investor confidence in future growth prospects.
- Clear Long-Term Strategy: Broadcom reaffirmed its long-term target of achieving $100 billion in AI revenue by 2027, indicating confidence in sustained demand while emphasizing ongoing collaboration with hyperscale customers in the coming years.
See More
Broadcom's Accelerating AI Sales Signal Strong Growth Outlook
- AI Sales Surge: Broadcom's Q2 bookings for AI semiconductors exceeded $30 billion, indicating a growing pipeline of large-scale deployments with leading AI customers, with plans to deploy 1.3GW of compute capacity by 2027, thereby enhancing its competitive position in the rapidly evolving AI market.
- Market Reaction: Despite Broadcom's decision not to raise AI revenue expectations for 2026 and 2027, resulting in a $319 billion market cap wipeout on Thursday, Citi urged investors to buy the dip, maintaining a $500 price target, reflecting confidence in the company's long-term growth.
- Analyst Rating Upgrades: BofA raised Broadcom's price target from $450 to $530, emphasizing the significance of its AI growth trajectory, with revenue expected to grow approximately 180% in fiscal 2026 and nearly 100% in fiscal 2027, which will drive future profitability.
- Investor Sentiment: Retail sentiment on Stocktwits around Broadcom trended in the 'extremely bullish' territory, with message volumes at extremely high levels, indicating strong market confidence in Broadcom's future performance despite recent stock price volatility.
See More
Broadcom Shares Plunge 14%, Nearly $300 Billion in Market Value Lost
- Earnings Beat Expectations: Broadcom's Q2 revenue reached $22.19 billion, a 48% year-over-year increase that surpassed market expectations of $22.13 billion, particularly driven by a 143% surge in AI chip revenue to $10.8 billion, reinforcing its pivotal role in AI infrastructure development.
- Market Overreaction: Despite strong earnings, Broadcom's stock plummeted 14% post-report, as the market's expectations for Q3 AI chip revenue were overly optimistic, with management projecting around $16 billion, falling short of analysts' $17.2 billion forecast, leading to a negative shift in investor sentiment.
- Robust Long-Term Strategy: Management reaffirmed its long-term AI revenue target of $100 billion by 2027, opting not to raise short-term goals, which reflects confidence in sustained demand, as CEO Hock Tan noted supply commitments are largely secured through 2027, indicating ongoing demand from hyperscale customers.
- Valuation Appears Reasonable: Although Broadcom's stock has increased over fivefold in the past three years, its forward PE ratio currently stands at 22.6, slightly above the average of 20.3, suggesting that the company's potential in the AI sector remains attractive to investors, despite facing short-term adjustment pressures.
See More
Asia-Pacific Markets Set for Mixed Opening
- Dow Jones Hits Record High: The Dow Jones Industrial Average surged by 874.86 points, or 1.73%, closing at a record 51,561.93, indicating a growing preference for non-tech stocks among investors.
- Chip Stocks Retreat: Following Broadcom's fiscal second-quarter revenue miss, which caused its stock to drop over 12%, investors are reducing exposure to AI-linked stocks, negatively impacting overall market sentiment.
- Mixed Futures in Asia-Pacific: Japan's Nikkei 225 futures are at 67,450, slightly up from the previous close of 67,470.69, while Hong Kong's Hang Seng index futures are at 25,158, down from 25,253.40, reflecting market uncertainty.
- Middle East Tensions Affect Markets: Ongoing complexities in the Middle East have led to rising oil and gasoline prices, heightening investor concerns and contributing to increased market volatility.
See More
AI Boom Fuels IPO Surge for Giants
- AI Market Growth: Over the past three years, AI stocks have driven a 77% increase in the S&P 500, showcasing the significant impact of AI technology on the market and attracting substantial investor interest in related companies.
- Performance of Giants: Companies like Nvidia and Alphabet have seen their stock prices increase by triple digits in the last three years, indicating that these early AI adopters are leveraging their stable revenue streams and emerging AI opportunities for substantial profit growth.
- Emerging Companies IPO: New AI companies such as SpaceX, Anthropic, and OpenAI are preparing for IPOs, with SpaceX aiming for a valuation close to $2 trillion, while Anthropic and OpenAI are valued at $965 billion and $852 billion respectively, highlighting the immense potential of the AI market.
- Investment Strategy Advice: For investors seeking AI growth, a diversified investment strategy is recommended, focusing on established tech giants like Alphabet and Amazon while also considering participation in emerging IPOs for long-term stable returns.
See More
Poet Technologies Posts Modest Gain Amid Market Volatility
- Stock Performance: Poet Technologies managed a modest gain of approximately 0.6% on Thursday despite bearish trends in optics and networking stocks, recovering from an early drop of 10.6% as investors reassessed the situation.
- Market Reaction: Following the earnings reports from Broadcom and Ciena, which both exceeded Wall Street expectations, the market reacted negatively, with Broadcom down 12.6% and Ciena down 13.7%, indicating concerns over valuation contractions.
- Contract Signing: The company recently secured a contract worth at least $50 million with Lumilens, although the timeline for revenue recognition remains uncertain, which could lead to overestimations of future sales and increase investment risks.
- Market Capitalization: Poet's current market capitalization stands at approximately $2.37 billion, and despite being down 25% from its 52-week high, the stock has risen about 144.5% year-to-date, reflecting investor interest in its long-term growth potential.
See More
Broadcom's Q2 Earnings Report Triggers Stock Plunge
- Stock Plunge: Broadcom (AVGO) shares fell over 14% post-earnings, erasing nearly $300 billion in market value, reflecting a market reevaluation of AI semiconductor growth expectations, which led to declines across the semiconductor sector.
- Strong Earnings Report: For Q2, Broadcom reported revenue of $22.19 billion, a 48% year-over-year increase, surpassing the consensus estimate of $22.13 billion, with adjusted EPS at $2.44, exceeding the $2.39 forecast, underscoring the company's pivotal role in AI infrastructure development.
- Conservative AI Revenue Outlook: Management projected Q3 AI chip revenue at approximately $16 billion, indicating significant growth but falling short of the market's consensus expectation of $17.2 billion, which dampened investor confidence in future growth prospects.
- Clear Long-Term Strategy: Broadcom reaffirmed its long-term target of achieving $100 billion in AI revenue by 2027, indicating confidence in sustained demand while emphasizing ongoing collaboration with hyperscale customers in the coming years.
See More
Broadcom's Accelerating AI Sales Signal Strong Growth Outlook
- AI Sales Surge: Broadcom's Q2 bookings for AI semiconductors exceeded $30 billion, indicating a growing pipeline of large-scale deployments with leading AI customers, with plans to deploy 1.3GW of compute capacity by 2027, thereby enhancing its competitive position in the rapidly evolving AI market.
- Market Reaction: Despite Broadcom's decision not to raise AI revenue expectations for 2026 and 2027, resulting in a $319 billion market cap wipeout on Thursday, Citi urged investors to buy the dip, maintaining a $500 price target, reflecting confidence in the company's long-term growth.
- Analyst Rating Upgrades: BofA raised Broadcom's price target from $450 to $530, emphasizing the significance of its AI growth trajectory, with revenue expected to grow approximately 180% in fiscal 2026 and nearly 100% in fiscal 2027, which will drive future profitability.
- Investor Sentiment: Retail sentiment on Stocktwits around Broadcom trended in the 'extremely bullish' territory, with message volumes at extremely high levels, indicating strong market confidence in Broadcom's future performance despite recent stock price volatility.
See More
Broadcom Shares Plunge 14%, Nearly $300 Billion in Market Value Lost
- Earnings Beat Expectations: Broadcom's Q2 revenue reached $22.19 billion, a 48% year-over-year increase that surpassed market expectations of $22.13 billion, particularly driven by a 143% surge in AI chip revenue to $10.8 billion, reinforcing its pivotal role in AI infrastructure development.
- Market Overreaction: Despite strong earnings, Broadcom's stock plummeted 14% post-report, as the market's expectations for Q3 AI chip revenue were overly optimistic, with management projecting around $16 billion, falling short of analysts' $17.2 billion forecast, leading to a negative shift in investor sentiment.
- Robust Long-Term Strategy: Management reaffirmed its long-term AI revenue target of $100 billion by 2027, opting not to raise short-term goals, which reflects confidence in sustained demand, as CEO Hock Tan noted supply commitments are largely secured through 2027, indicating ongoing demand from hyperscale customers.
- Valuation Appears Reasonable: Although Broadcom's stock has increased over fivefold in the past three years, its forward PE ratio currently stands at 22.6, slightly above the average of 20.3, suggesting that the company's potential in the AI sector remains attractive to investors, despite facing short-term adjustment pressures.
See More
Asia-Pacific Markets Set for Mixed Opening
- Dow Jones Hits Record High: The Dow Jones Industrial Average surged by 874.86 points, or 1.73%, closing at a record 51,561.93, indicating a growing preference for non-tech stocks among investors.
- Chip Stocks Retreat: Following Broadcom's fiscal second-quarter revenue miss, which caused its stock to drop over 12%, investors are reducing exposure to AI-linked stocks, negatively impacting overall market sentiment.
- Mixed Futures in Asia-Pacific: Japan's Nikkei 225 futures are at 67,450, slightly up from the previous close of 67,470.69, while Hong Kong's Hang Seng index futures are at 25,158, down from 25,253.40, reflecting market uncertainty.
- Middle East Tensions Affect Markets: Ongoing complexities in the Middle East have led to rising oil and gasoline prices, heightening investor concerns and contributing to increased market volatility.
See More
AI Boom Fuels IPO Surge for Giants
- AI Market Growth: Over the past three years, AI stocks have driven a 77% increase in the S&P 500, showcasing the significant impact of AI technology on the market and attracting substantial investor interest in related companies.
- Performance of Giants: Companies like Nvidia and Alphabet have seen their stock prices increase by triple digits in the last three years, indicating that these early AI adopters are leveraging their stable revenue streams and emerging AI opportunities for substantial profit growth.
- Emerging Companies IPO: New AI companies such as SpaceX, Anthropic, and OpenAI are preparing for IPOs, with SpaceX aiming for a valuation close to $2 trillion, while Anthropic and OpenAI are valued at $965 billion and $852 billion respectively, highlighting the immense potential of the AI market.
- Investment Strategy Advice: For investors seeking AI growth, a diversified investment strategy is recommended, focusing on established tech giants like Alphabet and Amazon while also considering participation in emerging IPOs for long-term stable returns.
See More
Poet Technologies Posts Modest Gain Amid Market Volatility
- Stock Performance: Poet Technologies managed a modest gain of approximately 0.6% on Thursday despite bearish trends in optics and networking stocks, recovering from an early drop of 10.6% as investors reassessed the situation.
- Market Reaction: Following the earnings reports from Broadcom and Ciena, which both exceeded Wall Street expectations, the market reacted negatively, with Broadcom down 12.6% and Ciena down 13.7%, indicating concerns over valuation contractions.
- Contract Signing: The company recently secured a contract worth at least $50 million with Lumilens, although the timeline for revenue recognition remains uncertain, which could lead to overestimations of future sales and increase investment risks.
- Market Capitalization: Poet's current market capitalization stands at approximately $2.37 billion, and despite being down 25% from its 52-week high, the stock has risen about 144.5% year-to-date, reflecting investor interest in its long-term growth potential.
See More
