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Broadcom Eyes Q3 Blowout Amid AI Frenzy
2 Sep
Summary
- Broadcom anticipates a 210% EPS increase and 85% revenue jump.
- Custom chip deals with Apple and others highlight AI exposure.
- Investors watch gross margins and infrastructure software health.
Broadcom Inc. (Nasdaq: AVGO) shares held steady around $370 on September 2, 2026, with investors anticipating robust third-quarter fiscal results. Expectations are high for a substantial earnings report, mirroring Nvidia's recent success and significant revenue growth projections.
The company is projected to achieve a 210% increase in earnings per share (EPS) and an 85% rise in revenue, reaching $29.4 billion. This performance is critical for assessing the continued growth within the AI sector.
Investor focus extends beyond financial figures, with significant attention on Broadcom's customer relationships. A recent expansion of its partnership with Apple Inc. will see Broadcom supply new custom chips, a deal worth over $30 billion. This agreement is in addition to existing long-term contracts with major tech firms, highlighting Broadcom's deep integration into the custom AI chip market.
Additionally, the health of Broadcom's gross margins, currently under pressure industry-wide due to high memory costs, will be closely scrutinized. The performance of its infrastructure software division also remains a key indicator for the company's overall growth trajectory.
