Broadcom Stock Price Prediction: Where Will AVGO Be in 3 Years? Broadcom (AVGO) reported first-quarter fiscal year 2026 revenue of $19.31 billion, a 29.5% increase compared to the same period last year. AI semiconductor revenue reached $8.4 billion, up 106% year-over-year, while free cash flow totaled $8.01 billion. The company maintained a record 68% adjusted EBITDA margin, reflecting strong operational efficiency. These results highlight Broadcom’s growth in AI-driven markets, which now account for a significant portion of its revenue. The stock, currently trading at $322.51, is 14% below its 52-week high of $412.95 despite robust business expansion. Analysts at 24/7 Wall St. set a price target of $352.37, implying a 9.26% upside over the next year. The model assigns a 90% confidence level to this projection, citing AI revenue acceleration and a $73 billion AI backlog. However, valuation concerns persist, with the stock trading at a 63x trailing P/E multiple. Broadcom’s recent earnings report underscored its momentum. Revenue exceeded expectations by $190 million, with non-GAAP diluted EPS of $2.05 surpassing the $2.02 estimate. AI semiconductor revenue hit $8.4 billion, surpassing the company’s own forecast, and adjusted EBITDA margins remained at a record 68%. Free cash flow rose 33.21% year-over-year, driven by strong cash generation from AI and other high-margin segments. The bull case for Broadcom hinges on its AI revenue trajectory. CEO Hock Tan has publicly committed to exceeding $100 billion in annual AI sales by 2027. Q2 FY2026 guidance projects AI semiconductor revenue of $10.7 billion and total revenue of approximately $22 billion, a 47% year-over-year increase.#google #broadcom #hock_tan #24_7_wall_st #ai_semiconductor
Broadcom Forecasts Stronger Second-Quarter Revenue Amid AI Growth Chipmaker Broadcom (AVGO-Q) reported that its second-quarter revenue exceeded Wall Street expectations, signaling robust demand for advanced semiconductors used in data centers supporting artificial intelligence applications. The company also announced a new share repurchase program of up to $10 billion by year-end. CEO Hock Tan highlighted the company’s AI revenue growth, stating, “Our AI revenue growth is accelerating, and we expect AI semiconductor revenue to be $10.7 billion in Q2.” Broadcom’s projected quarterly revenue of approximately $22.0 billion surpassed analysts’ average estimate of $20.56 billion, according to data from LSEG. The company previously outlined plans to sell at least 1 million chips by 2027 using its stacked design technology, a target that could generate billions in revenue. However, growth in its infrastructure software segment slowed to 1% in the first quarter, falling short of analysts’ expectations of 2.6% growth to $6.88 billion. Shares of Broadcom rose 3.8% in extended trading following the announcement. Canadian Crude Oil Discount Narrows Amid Iran Conflict The price gap between heavy Canadian crude oil and U.S. benchmark WTI crude has narrowed significantly as geopolitical tensions disrupt Middle Eastern oil supplies. Analysts noted that the discount for heavy Canadian crude has tightened by $1.25 per barrel since last Friday, driven by increased demand from India and China amid Middle Eastern supply shortages. The Trans Mountain pipeline, which transports heavy crude from Alberta’s oil sands to British Columbia for export, is currently operating below full capacity.#broadcom #hock_tan #lseg #ai_revenue #tsx_composite
