Shuffling Our Chip Mix, Setting a Broadcom Price Target With 4 Trades
We're putting our plan into action by selling off some of three chip maker positions to buy into a new name.
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| Symbol | Transaction Type | # Shares Traded | Recent Price $ | Shares Owned After Trade | % Portfolio |
|---|---|---|---|---|---|
AVGO | Buy | 200 | $344.50 | 200 | 1.25% |
MRVL | Sell | 240 | $87 | 2,145 | 3.40% |
NVDA | Sell | 150 | $178.25 | 970 | 3.15% |
QCOM | Sell | 177 | $176.50 | 933 | 3.0% |
After you receive this alert and when the market opens, the Portfolio will make the following trades:
Buys 200 shares of Broadcom (AVGO) at or near $344.50. Following the trade, the Portfolio will own 200 AVGO shares, roughly 1.25% of the Portfolio.
Sell 240 shares of Marvell (MRVL) at or near $87. Following the trade, the Portfolio will own 2,145 MRVL shares, roughly 3.40% of the Portfolio.
Sell 150 shares of Nvidia (NVDA) at or near $178.25. Following the trade, the Portfolio will own 970 NVDA shares, roughly 3.15% of the Portfolio.
Sell 177 shares of Qualcomm (QCOM) at or near $176.50. Following the trade, the Portfolio will own 933 QCOM shares, roughly 3.0% of the Portfolio.
Over the last few days, we’ve discussed with you our plan to re-jigger the Portfolio’s chip exposure, culling back some of our existing exposure to make room for Broadcom shares.
Per our comments on Tuesday, with AVGO shares delivering a positive test for support at their 100-day moving average, we are starting that process. As we do this, we will establish a $445 price target for AVGO shares, which equates to a PEG ratio of 0.9 measured against the expected EPS growth rate of 34.5% for 2026 and 2027 applied to consensus EPS of $13.80 for 2026.
Backing that bottom-line consensus forecast is the $73 billion in backlog Broadcom management expects to ship over the next six quarters, as well as the expectation for continued AI order growth. Part of that stems from its position in the custom AI chip space, which complements our exposure with Marvell. But that $73 billion is less than half of Broadcom’s overall backlog of $162 billion, which is up from $110 billion exiting the company’s August quarter.
While our $445 target offers meaningful upside for AVGO shares compared to the current share price, we are mindful of the technical setup discussed on Tuesday as well as the gap in the chart that would be filled near $305. That explains why we are not taking a full bite of AVGO shares today relative to a larger position size. Should we see AVGO shares linger and build a base near current levels, that would allow us to build up a position over time. If AVGO shares pulled back and closed that gap, we would use that to increase the Portfolio’s position at a quicker pace.
Balancing that upside of about 30% versus downside to fill that gap of 10%, we’ll start AVGO shares with a Two rating. And if we see the shares pull back from current levels, we’ll evaluate that rating. We will also set our initial panic point at $275, which will give us ample room to build a position without tripping any alarms. As AVGO shares rebound, we will move that panic point higher.
While we are whittling the Portfolio’s exposure to MRVL, NVDA and QCOM shares to not only fund but diversify the Portfolio’s end-market exposure, the largest source of funds for the trade is coming from the sale of QCOM shares. The reasons behind this are as follows:
While we continue to see further upside in the shares as Qualcomm’s diversification strategy unfolds, we see greater upside with NVDA and MRVL shares over the coming year.
Second, near-term, Qualcomm’s revenue stream remains largely exposed to the smartphone market, which tends to have a seasonal slump in the first part of the calendar year.
When Micron (MU) reports after Wednesday night's close, we’ll be interested in its outlook for the smartphone market, especially given reports that memory for that market could be sacrificed given the level of robust demand for AI and data center markets. That could make for a more challenging smartphone market in the first half of 2026, a factor that would likely restrain QCOM shares. If that looks to be the case, QCOM shares could be an additional source of funds as we look to further expand the Portfolio’s AVGO exposure.
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(Please note that we are looking to execute these trades at or near the share price mentioned above. Once the trade is completed, subscribers can see the trade's executed price here. Be sure to toggle the chart to sort by Purchase Date.)
At the time of publication, TheStreet Pro Portfolio was long MRVL, NVDA and QCOM.
