Key Highlights
- Broadcom delivers fiscal Q3 2026 earnings results September 2 following market hours.
- J.P. Morgan maintains its Buy recommendation with a $580 target price for AVGO shares.
- Analysts anticipate earnings per share reaching $3.22, representing a 90.5% annual increase, alongside revenue of $29.24 billion, climbing 83.3%.
- BakerAvenue strategist King Lip highlights AVGO as a premier investment, positioning it as the leading choice for customized AI semiconductors and inference operations.
- Consensus among Wall Street professionals shows Strong Buy, featuring an average target of $511.88, suggesting 38% growth potential.
The semiconductor giant Broadcom prepares to unveil its third fiscal quarter performance this Wednesday, September 2, following the trading session’s conclusion. As the announcement approaches, AVGO shares remain down over 25% from their peak levels achieved earlier this year.
Financial analysts project the chip manufacturer will deliver earnings per share of $3.22, marking a substantial 90.5% year-over-year acceleration. Revenue projections stand at $29.24 billion, representing an 83.3% climb compared to the corresponding quarter in the previous year.
J.P. Morgan’s Harlan Sur maintained his Buy stance on AVGO shares in advance of the upcoming report, preserving his $580 price objective. Sur holds the 17th position among over 12,500 analysts monitored by TipRanks, boasting a 70% accuracy record and delivering average gains of 42.2% per recommendation.
Sur anticipates the quarterly results will benefit from the early deployment of advanced TPU v8i processors alongside sustained momentum in TPU v7 technology. He also foresees contributions from Meta Platforms‘ MTIA Iris ASIC expansion and robust interest in Broadcom’s Tomahawk 5 switching solutions.
Additionally, Sur projects fiscal 2026 AI-related revenue will exceed $56 billion, supported by an aggressive second-half acceleration in TPU v8i deployments and solid networking product demand, including the recently introduced Tomahawk 6 102T switching infrastructure.
Partnership Worries With Google Dismissed by Expert
AVGO shares have advanced merely 7% since January, significantly trailing the PHLX Semiconductor Index, which has surged 61% during the identical timeframe. Sur attributes this relative weakness to market apprehension regarding possible market share erosion at Google and unclear visibility regarding fiscal 2027 AI revenue trajectories.
Sur dismisses these worries as exaggerated. He references industry intelligence gathered throughout the past 90 days indicating Broadcom’s strategic standing with Google remains secure. The recent partnership between Google and Marvell Technology, according to Sur, represents Google diversifying its supplier base to complement its in-house semiconductor development rather than displacing Broadcom. A five-year collaboration finalized in early April establishes Broadcom as Google’s principal TPU collaborator.
Critical topics for Wednesday’s earnings discussion include potential updates to management’s fiscal 2027 AI revenue forecast, presently estimated above $100 billion, and commentary regarding business acceleration into fiscal 2028.
Wall Street Highlights AVGO as Leading Inference Opportunity
BakerAvenue’s chief strategist King Lip similarly designated AVGO as a premier selection before the earnings release, referencing a fundamental transformation in AI infrastructure investment patterns. He identifies the industry transitioning from training-centric applications toward inference operations, where specialized processors manage extensive, recurring computational tasks.
“Nvidia has been great for training models, but for huge repetitive type workloads, AVGO is our top pick for the next evolution in custom AI chips and inference play,” Lip told CNBC.
Lip emphasized that Nvidia’s success doesn’t preclude Broadcom’s advancement. Both companies address distinct segments within the AI hardware ecosystem.
Broadcom additionally offers a dividend yield of 0.71%, enhancing its attractiveness for investors with extended investment horizons.
The collective Wall Street perspective on AVGO registers as Strong Buy, incorporating 25 Buy recommendations alongside 3 Hold ratings. The consensus price objective of $511.88 indicates approximately 38% appreciation potential from present trading levels.
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