Broadcom Inc’s Chief Legal and Corporate Affairs Officer recently sold $12.54 million worth of AVGO shares amid investor skepticism about AI infrastructure investments, despite strong quarterly results. The semiconductor giant reported earnings of $1.95 per share on revenue of $18.02 billion, beating expectations. CEO Hock Tan projected AI chip sales to double YoY. Despite an initial climb, AVGO stock plunged 17% over two trading sessions and is now down 18% from all-time highs. Investors are concerned about potential margin compression as Broadcom scales production. Tan’s compensation incentives are tied to growing AI revenue to over $120 billion by 2030.

Analysts forecast AVGO stock revenue to increase from $64 billion in fiscal 2025 to $227 billion in fiscal 2030, with adjusted earnings expected to rise from $6.82 to $23.37 per share. With a forward earnings multiple of 27x, the stock could reach $630 by late 2028, representing a 70% potential upside. Out of 40 analysts, 34 recommend “Strong Buy,” with an average price target of $456.20. Tan emphasized Broadcom’s AI sales growth potential despite near-term margin pressure.

Read more at Barchart: 1 Broadcom Insider Just Dumped $12 Million in AVGO Stock. Should You Sell Too?