Key Stats for Broadcom Stock
- Price change for Broadcom stock: 5%
- $AVGO Share Price as of Mar. 4: $318
- 52-Week High: $415
- $AVGO Stock Price Target: $453
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What Happened?
Broadcom (AVGO) stock jumped 5% in after-hours trading after the chipmaker delivered a strong quarter and an even stronger outlook.
- Revenue came in at $19.31 billion, beating the $19.18 billion estimate.
- Adjusted EPS of $2.05 topped the $2.03 expected. Both numbers were records.
- Revenue grew 29% year-over-year, and the AI business was the clear driver.
- AI revenue surged 106% from a year ago to $8.4 billion.
- CEO Hock Tan had predicted AI revenue would double — and it delivered exactly that.
- The company’s custom AI chips, built for the likes of Google, Meta, and Anthropic, are ramping fast.
- The guidance was the real headline though. Broadcom guided Q2 revenue to $22 billion — well ahead of the $20.56 billion analysts expected. That’s 47% year-over-year growth.
- AI chip revenue alone is expected to hit $10.7 billion next quarter, up 140% from a year ago.
Tan also made a bold statement on the call: Broadcom now has “line of sight” to more than $100 billion in AI chip revenue in 2027. The company has locked up its supply chain to support that demand.
The company now has six major custom chip customers, adding OpenAI to its existing roster.
- Tan said OpenAI is expected to deploy over one gigawatt of its first custom chip in 2027.
- Anthropic’s demand is expected to surge to over three gigawatts that same year.
- There was one softer spot. Infrastructure software revenue came in at $6.8 billion, slightly below the $7.02 billion estimate.
But Tan pushed back on concerns that AI disrupts the business. He called VMware “the essential software layer” in AI data centers and said the growth in agentic AI will actually create more demand for VMware, not less.
Broadcom also announced a new $10 billion share buyback program through the end of 2026.
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What the Market Is Telling Us About Broadcom Stock
Broadcom stock was down 8% year-to-date heading into earnings, so investors were looking for reassurance. They got it.
The numbers were clean. The guidance was strong. And Tan’s $100 billion AI revenue target for 2027 gave the market a concrete reason to stay bullish on Broadcom stock.
The custom chip business is the key differentiator here.
Unlike Nvidia, which sells general-purpose GPUs, Broadcom builds chips specifically designed for each customer’s AI workload.
That creates deep, multiyear relationships — and serious pricing power.
Broadcom stock looks like a cleaner AI play than many realize.
The core thesis is straightforward: more AI spending means more custom silicon, and Broadcom is the go-to partner for the biggest names in the space.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
