Broadcom's shares have rocketed 60% in the past year, fueled by explosive AI demand, but with fiscal Q1 results due Thursday, investors face a pivotal moment.
Trading at $319.54 on March 3, 2026, the chip giant's $1.5 trillion market cap underscores its dominance in AI infrastructure.
AI Powerhouse
Broadcom crafts custom ASICs and networking gear that outpace GPUs in efficiency for data centers. In Q4 fiscal 2025, revenue hit $18 billion, up 28% year-over-year, with AI chips surging 74% to lead the charge.
Adjusted EPS jumped to $1.95, beating estimates. Broadcom anticipates that its revenue from AI semiconductors will double to $8.2 billion for the first quarter of its fiscal year 2026, which ended in early February. For comparison, Broadcom's projected total revenue is $19.1 billion.
Earnings Track Record
History favors bulls: In each of the last four quarters, Broadcom's earnings exceeded the Zacks Consensus Estimate; the average earnings surprise was 3.35%.
A quarterly dividend of $0.65 yields 0.8%, backed by 15 years of hikes and a 50% payout ratio.
Wall Street Cheers
On March 1, 2026, Harlan Sur of J.P. Morgan, one of the most closely watched voices, reaffirmed his Buy rating on AVGO with a price target of $475, above the Street average. His call conveys optimism that Broadcom can maintain its strong long-term uptrend and overcome recent short-term volatility.
Due to the high demand for its AI products, particularly Google's TPU accelerators and AI networking chips, Sur anticipates Broadcom to deliver a strong earnings beat and guidance increase in its upcoming F1Q26 report.
Critically, risks loom: Non-AI segments softened last quarter, and high valuations amplify misses. Yet, with AI revenue eyeing $50 billion by year-end and secular tailwinds, buying dips now looks savvy for long-term holders, similarly Thursday’s print could ignite the next leg up.
