# Rothschild & Co. Downgrades Broadcom to Neutral on Earnings Concerns

By Token Post

Canonical URL: https://www.tokenpost.com/news/insights/56864
Published: 2026-11-13T16:02:30.000Z
Updated: 2026-11-13T16:02:30.000Z
Section: Insights & Views

> The firm tied Broadcom’s fiscal 2028 outlook to computing demand from OpenAI and Anthropic, and flagged Google’s shift away from the chipmaker.

Rothschild & Co. cut Broadcom (AVGO) to Neutral on Nov. 13, pointing to questions about earnings durability and the company’s reliance on AI-lab demand for its fiscal 2028 outlook.

The firm said it still sees potential upside if Broadcom clears key hurdles, but questioned whether the quality and durability of its earnings would support a near-term rerating. Rothschild & Co. tied Broadcom’s fiscal 2028 guidance significantly to computing demand from OpenAI and Anthropic. It said the labs need to sustain their market positions and maintain investment-grade credit ratings to preserve access to financing.

Rothschild & Co. also pointed to Google shifting part of its chip business away from Broadcom. The firm said investors may expect frontier AI labs to follow if Google’s strategy succeeds. Google’s non-Broadcom chip performance will be important to assessing the durability of Broadcom’s model.