Broadcom Earnings Report Expected to Show Strong Growth This Thursday

IRVINE, California — Broadcom Inc. is set to report its fiscal third-quarter earnings after the close of trading on Thursday. Analysts anticipate a notable revenue growth of 21%, rising from $13.07 billion reported a year ago, according to consensus from LSEG.

The company, which specializes in custom chips for major cloud firms and networking gear, is projected to maintain steady revenue growth throughout the year, with an increase expected in 2026 as well.

Broadcom has capitalized on the growing demand from the AI sector, particularly through its accelerator chips, known as XPUs. These processors are designed to be more efficient and cost-effective for running specific AI applications compared to traditional graphics processing units (GPUs).

Analysts from Cantor Fitzgerald noted in a recent report that they foresee increased demand from hyperscale data centers and anticipate that current AI custom silicon engagements will convert into high-volume customer orders. They recommend buying Broadcom stock based on these prospects.

Estimates suggest that custom silicon could yield $25 billion to $30 billion in revenue for Broadcom next year, potentially surpassing $40 billion by 2027. The company reported a total revenue of $51.6 billion in the last fiscal year.

Broadcom’s shares have surged 30% this year and nearly doubled over the past 12 months, bringing its market capitalization to approximately $1.4 trillion. In the prior quarter, the AI segment saw a 46% increase in revenue to over $4.4 billion, with 40% of that from networking.

CEO Hock Tan stated that AI revenue is projected to reach $5.1 billion in the third quarter as partnerships with hyperscale clients continue to expand.

Broadcom’s growth has also been driven by strategic acquisitions, notably the $61 billion purchase of VMware in 2023, which has significantly bolstered its infrastructure software business accounting for 44% of recent sales.