Chipmaker Broadcom AVGO.O fell short of Wall Street's expectations for second-quarter revenue on Wednesday, while the company kept its 2027 sales forecast unchanged

** Shares down ~15% at $408.20 premarket

HEADLINE WEAK, STORY STRONG

** Morningstar (fair value: $650) says that AVGO's demand appears to be strengthening and gaining pace despite holding its long-term sales outlook steady

** Adds co's share selloff reflects a 'blunt reaction to a vague headline figure', while underlying fundamentals are improving

** J.P. Morgan ("overweight," PT: $580) says it is more positive on AVGO's growth outlook, reinforcing its view that the AI compute buildout is still in early stages

** Morgan Stanley ("overweight," PT: $502) says results were encouraging even amid higher investor expectations and growth trends remains strong despite supply constraints

** BofA Global Research("buy," PO: $530) says Broadcom's decision to keep the long-term sales outlook steady, reflects co's conservatism amid ongoing customer supply constraints