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Broadcom Targets US$29.4 Billion Quarter as AI Expectations Reach New Heights
(MENAFN- Golin Mena) As Broadcom prepares to report its latest earnings, investor attention is firmly on the semiconductor giant’s AI outlook, with expectations high for both its quarterly performance and guidance for the year ahead.
Broadcom has emerged as one of the biggest beneficiaries of the AI boom, but following the market’s reaction to its previous results, another strong quarter alone may not be enough to satisfy investors.
Commenting ahead of the results, Josh Gilbert, etoro Lead Analyst, APAC & Middle East, said: “Broadcom has become one of the AI boom’s biggest winners, but as we’ve come to understand with the AI trade in 2026, simply delivering a big quarter is no longer enough. Last time out, Broadcom posted record AI revenue, and its shares still fell 12.6%, after the Q3 AI forecast missed elevated expectations and management left its longer-term target unchanged. Supply constraints, rather than demand, were blamed, so investors will want evidence that Broadcom can convert its huge order book into revenue more quickly.
“This week, revenue is expected to rise 85% to US$29.4 billion, with adjusted earnings nearly doubling to US$3.23 a share. Nvidia’s result last week showed that AI infrastructure demand remains extraordinary, and if demand is not the problem, investors will expect that strength to flow through to a major guidance upgrade. Management is currently targeting more than US$100 billion in AI semiconductor revenue next year when the market wants something closer to US$120 billion, and with bookings running at almost three times shipments last quarter, another conservative target won't cut it with shareholders.
“The other issue is Google. Its new chip agreement with Marvell Technology has raised concerns that Broadcom could lose share at its biggest custom silicon customer, so Broadcom needs to show that Google is adding a supplier rather than swapping one out. A strong quarter is already expected, so the harder job is convincing investors that US$100 billion is the floor for its AI business, not the ceiling.”
Broadcom has emerged as one of the biggest beneficiaries of the AI boom, but following the market’s reaction to its previous results, another strong quarter alone may not be enough to satisfy investors.
Commenting ahead of the results, Josh Gilbert, etoro Lead Analyst, APAC & Middle East, said: “Broadcom has become one of the AI boom’s biggest winners, but as we’ve come to understand with the AI trade in 2026, simply delivering a big quarter is no longer enough. Last time out, Broadcom posted record AI revenue, and its shares still fell 12.6%, after the Q3 AI forecast missed elevated expectations and management left its longer-term target unchanged. Supply constraints, rather than demand, were blamed, so investors will want evidence that Broadcom can convert its huge order book into revenue more quickly.
“This week, revenue is expected to rise 85% to US$29.4 billion, with adjusted earnings nearly doubling to US$3.23 a share. Nvidia’s result last week showed that AI infrastructure demand remains extraordinary, and if demand is not the problem, investors will expect that strength to flow through to a major guidance upgrade. Management is currently targeting more than US$100 billion in AI semiconductor revenue next year when the market wants something closer to US$120 billion, and with bookings running at almost three times shipments last quarter, another conservative target won't cut it with shareholders.
“The other issue is Google. Its new chip agreement with Marvell Technology has raised concerns that Broadcom could lose share at its biggest custom silicon customer, so Broadcom needs to show that Google is adding a supplier rather than swapping one out. A strong quarter is already expected, so the harder job is convincing investors that US$100 billion is the floor for its AI business, not the ceiling.”
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