Broadcom (AVGO) Stock Gains Analyst Confidence Before Q3 Earnings Release

Key Highlights

Table of Contents

Broadcom will announce Q3 FY26 financial results on September 2 following market hours.
J.P. Morgan maintains its Buy recommendation with a $580 price objective for AVGO.
Analysts project earnings per share of $3.22, representing a 90.5% annual increase, alongside revenue of $29.24 billion, up 83.3%.
BakerAvenue’s King Lip identifies AVGO as a leading investment opportunity, positioning it as the premier choice for customized AI semiconductors and inference applications.
Consensus among analysts shows Strong Buy, with a mean price objective of $511.88, suggesting 38% growth potential.

The semiconductor giant Broadcom is preparing to unveil its third-quarter fiscal year results on Wednesday, September 2, following the market’s close. Leading up to this announcement, AVGO stock is currently positioned over 25% beneath its peak valuation reached earlier this year.

Broadcom Inc., AVGO

Analyst forecasts indicate the semiconductor manufacturer will deliver earnings per share of $3.22, marking a substantial 90.5% increase compared to the previous year. Sales projections stand at $29.24 billion, representing an 83.3% climb from the corresponding quarter last year.

J.P. Morgan’s Harlan Sur has reaffirmed his Buy stance on AVGO in advance of the earnings release, maintaining his $580 price objective. Sur holds the No. 17 position among over 12,500 analysts monitored by TipRanks, boasting a 70% accuracy rate with average returns of 42.2% per assessment.

Sur anticipates the quarterly performance will benefit from the early deployment of next-generation TPU v8i processors and sustained momentum in TPU v7 sales. He also projects additional gains from Meta Platforms‘ MTIA Iris ASIC expansion and robust orders for Broadcom’s Tomahawk 5 switching technology.

Additionally, Sur forecasts FY26 AI-related revenue exceeding $56 billion, supported by an aggressive second-half acceleration in TPU v8i shipments and healthy networking sales, including the latest Tomahawk 6 102T switching system.

Google Partnership Worries Exaggerated, Expert Claims

AVGO shares have advanced just 7% since the beginning of the year, trailing the PHLX Semiconductor Index, which has climbed 61% during the identical timeframe. Sur connects this relative weakness to market anxiety regarding possible market share erosion at Google and uncertain visibility into FY27 AI revenue projections.

Sur maintains these worries are excessive. He references industry intelligence gathered during the past 90 days indicating Broadcom’s strategic position with Google stays secure. The recent collaboration between Google and Marvell Technology, he explains, represents Google diversifying its supplier base to bolster its in-house chip development rather than diminishing Broadcom’s role. A five-year partnership established in early April confirms Broadcom as Google’s principal TPU collaborator.

Critical topics for Wednesday’s earnings discussion include potential management updates to FY27 AI revenue projections, presently estimated above $100 billion, and signals regarding business trajectory into FY28.

Industry Experts Position AVGO as Premier Inference Investment

BakerAvenue’s chief strategist King Lip has also highlighted AVGO as a preferred investment before the earnings announcement, pointing to a fundamental transformation in AI infrastructure investment patterns. He observes the industry transitioning from training-centric applications toward inference operations, where specialized processors manage high-volume, 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 growth. Both companies address distinct segments within the AI hardware ecosystem.

Broadcom additionally offers a dividend yield of 0.71%, enhancing its attractiveness for extended investment horizons.

The collective Wall Street assessment for AVGO stands at Strong Buy, featuring 25 Buy recommendations and 3 Hold positions. The mean price objective of $511.88 indicates approximately 38% appreciation potential from present trading levels.

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