Key Takeaways for Broadcom Stock as of September 2026
- Record Quarter Beat: Broadcom (AVGO) posted Q3 FY2026 revenue of $29.6B, up 85.50% YoY and 0.53% above the Street’s $29,434.51M estimate, while adjusted EPS of $3.32 beat the $3.24 estimate by 2.53% and rose 96.45% YoY.
- AI Revenue Guide Raised: Management now expects fiscal 2026 AI semiconductor revenue of $58B, up 186% YoY and above the prior $56B guide, with Q4 AI revenue guided to $21.7B, up 236% YoY.
- XPU Shipments Triple: AI semiconductor revenue hit $16.7B in Q3, more than tripling YoY as XPU shipments climbed over 3.5x and made up 73% of total AI revenue.
- Two-Year Roadmap: CEO Hock Tan told investors AI revenue is set to double to ~$115B in fiscal 2027 and double again to ~$230B in fiscal 2028, calling the outlook “a carefully structured outlook that we believe we can achieve.”
Broadcom just guided AI revenue to double twice more, hitting $230 billion by 2028. See the full trajectory on TIKR for free →
AVGO Stock Triples AI Revenue as Broadcom Locks In Google, Anthropic and OpenAI Through 2028
Broadcom (AVGO) closed its fiscal third quarter on July 31, 2026 with consolidated revenue of $29,591 million, up 85.50% year over year and 33.37% sequentially. Operating income hit a record $20,095 million, up 92.20% YoY, with operating margin at 67.91%, a 106 basis point beat versus the Street’s 66.85% estimate. Adjusted EPS of $3.32 topped the $3.24 estimate by 2.53% and nearly doubled from $1.69 a year ago. Free cash flow reached a record $13.7 billion, 46% of revenue, while the balance sheet grew to $24 billion in cash after Broadcom paid down $5.6 billion of long-term debt during the quarter.
The engine behind all of it is AI semiconductor revenue, which reached $16.7 billion in the quarter, more than tripling year over year. XPU shipments, Broadcom’s custom AI accelerators built for Google, Anthropic, OpenAI and Meta, climbed over 3.5 times YoY and made up 73% of that AI total. Broadcom shipped its Ironwood TPU v7 in high volume to Google and Anthropic and began production of the next-generation TPU v8i, which CEO Hock Tan said performs comparably to Nvidia’s Vera Rubin GPU. OpenAI’s first custom chip, Jalapeno, also shipped in the quarter and, per Tan, runs inference workloads at less than half the cost of a GPU.
That momentum is now baked into a guide most chipmakers wouldn’t dare put on paper. Broadcom expects fiscal 2026 AI revenue of $58 billion, above its prior $56 billion outlook, then a full doubling to approximately $115 billion in fiscal 2027 and another doubling to $230 billion in fiscal 2028. Asked whether Broadcom could ship even more if pressed, Tan didn’t hedge on Q3 earnings call: “Yes, demand, we can ship significantly more… we have secured supply, and we think it’s the right number to put it to $115 billion. And if… our ability to secure more supply change, of course, we will uplift.” Anthropic alone is on track to add 15 gigawatts of TPU capacity between 2027 and 2028, positioning it to become Broadcom’s largest XPU customer.
Gross margin slipped to 75%, down 210 basis points sequentially, as memory-heavy XPUs diluted the mix. But operating margin still expanded 240 basis points YoY to 67.9%, proof that revenue growth of 127% in the semiconductor segment is outrunning the 22% growth in operating expenses tied to it.
Broadcom’s Guide Says AI Revenue Doubles Twice. Here’s What That Means for AVGO Stock on TIKR for free →
TIKR Values Broadcom Stock at $1,142, Pricing In 598% Upside by 2030
TIKR’s mid-case model values Broadcom at $1,141.61 by October 31, 2030, implying a 210.9% total return from the current price of $367.24, or 31.3% annualized over 4.2 years.
That annualized return sits well above what investors typically expect from a company already generating $29.6 billion in quarterly revenue and 68% operating margins, a return profile more common to early-stage growth names than a semiconductor incumbent with a $24 billion cash balance. The gap reflects how much of Broadcom’s AI ramp still lies ahead of the current stock price rather than behind it.
The target rests on the same trajectory management laid out on the call: AI revenue doubling to $115 billion in fiscal 2027 and doubling again to $230 billion in fiscal 2028, with Google, Anthropic, OpenAI and Meta gigawatt commitments already secured through those years. Operating leverage that pushed margins to a record 67.9% in Q3 even as gross margin diluted gives the model room to trust that earnings, not just revenue, scale with the AI build-out.
TIKR’s Model Puts 31.3% Annualized Returns on AVGO Stock. See the Full Breakdown on TIKR for free →
Should You Invest in Broadcom Inc.?
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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!
