Observed Signal · Jun 3, 2026 · Earnings Report · Source: CNBC Investing · Impact: 4/5 · Sentiment: Positive
Broadcom earnings may revive chip rally
Broadcom is due to report quarterly results after the market close on June 3, 2026, and analysts expect the company’s results and guidance to influence the broader semiconductor rally. Hyperscalers rely on Broadcom’s ASICs and the company has commercial agreements with Anthropic, OpenAI and Alphabet (including an April deal to help build custom AI chips/TPUs). FactSet consensus for Broadcom’s second-quarter EPS is $2.40 and revenue $22.13 billion; UBS analyst Timothy Arcuri says Street estimates look beatable and has a buy rating with a $490 target. Morgan Stanley projected Broadcom AI revenues for 2027 at $150–$200 billion (about $105 billion for ASIC). Analysts flag memory shortages and summer volatility in AI-linked names.
Broadcom is a major supplier of AI-focused ASICs to hyperscalers; strong earnings or guidance could validate AI infrastructure demand, influence chip-sector valuations and affect suppliers and related markets.
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Key Takeaways & Evidence Grounding
- Broadcom was expected to report second-quarter EPS of $2.40 and revenue of $22.13 billion according to FactSet.
- Broadcom has commercial deals with Anthropic, OpenAI and Alphabet; Alphabet signed an April deal to help build custom AI chips/TPUs with Broadcom.
- UBS analyst Timothy Arcuri said Street estimates look beatable, has a buy rating on Broadcom and set a $490 price target.
- Broadcom shares were up about 40% year-to-date in 2026 and options activity implied the stock could move as much as 8% after results.
- Morgan Stanley projected Broadcom AI revenues for 2027 in a sales note at $150–$200 billion, with around $105 billion attributable to ASICs.
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Broadcom Set to Reveal Strong Earnings Amid AI Surge
Broadcom is scheduled to report its fiscal first-quarter results after the market close Wednesday. Analysts polled by LSEG expect adjusted earnings per share of $2.03 and revenue of $19.18 billion, implying about 29% year-over-year revenue growth. The company has seen strong AI-related demand, reporting a 65% jump in AI revenue in fiscal 2025 and contributing to the development of Google's tensor processing units; CEO Hock Tan had expected AI revenue to double to $8.2 billion in the fiscal first quarter. Analysts estimate $12.25 billion in semiconductor solutions revenue and $7.02 billion in infrastructure software for the quarter. Broadcom also announced new Wi‑Fi 8 chips during the quarter and bought VMware in 2023. Executives will host a conference call at 5 p.m. ET to discuss results.
Broadcom beats Q3 estimates, forecasts AI revenue doubling to $230B
Broadcom reported fiscal Q3 results that beat expectations, with adjusted EPS of $3.32 versus $3.24 expected and revenue rising 86% year over year to $29.59 billion, above consensus. Net income more than tripled to $13.09 billion, and adjusted operating profit grew 92% to just over $20 billion. The company guided Q4 revenue to $34.8 billion, slightly below the $35.03 billion consensus. Broadcom raised its current-fiscal-year AI chip revenue target to $58 billion from $56 billion, implying 186% growth, and reiterated long-range projections of $115 billion in AI revenue next fiscal year and $230 billion the year after. CEO Hock Tan highlighted demand from AI labs, with custom chips for Google, OpenAI, Meta, Anthropic, and Apple. Shares fell about 4% after the results despite the strong numbers.
Broadcom Soars on AI Revenue Surge Forecast
Broadcom shares rose nearly 5% after CEO Hock Tan told analysts he expects AI chip revenue in 2027 to be "significantly in excess of $100 billion," citing strong demand for custom silicon and AI networking. Tan said Broadcom is approaching roughly 10 gigawatts of capacity across six customers and has secured high‑bandwidth memory and leading‑edge wafer supply through 2028. JPMorgan analysts estimated $12–15 billion in revenue per gigawatt and raised Broadcom’s 2027 AI revenue forecasts to about $120 billion or more; Goldman Sachs highlighted Broadcom’s AI networking and custom silicon advantages versus competitors like Nvidia. Broadcom reported better‑than‑expected quarterly results with AI revenue more than doubling. Component suppliers Credo and Amphenol rallied on bets favoring copper connectivity, while optical vendors Lumentum and Coherent fell.
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