Broadcom AI Revenue Surges 221% as 24/7 Wall St. Sets $426 Target

EarningsAnalystProduct / Tech Impact 4
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Summary · why it matters

Broadcom's AI semiconductor revenue surged 221% year-over-year to $16.70 billion in fiscal Q3 2026, even as the stock trades at $357.61 and has gained just 3.71% year-to-date, prompting 24/7 Wall St. to issue a BUY rating with a $426.10 price target implying 19.15% upside. The September 2 report showed total revenue of $29.59 billion, up 85.5% year-over-year, with non-GAAP EPS of $3.32 marking the ninth straight beat, and management guided Q4 AI revenue to $21.7 billion, up 236%. CEO Hock Tan has targeted exceeding $100 billion in AI sales by 2027 and disclosed a Meta partnership for 3 gigawatts through 2028, an OpenAI commitment of 1.3 gigawatts in 2027 within a broader 10 gigawatts by 2029 agreement, and $6 billion in additional purchase orders from two unnamed customers. Broadcom's forward P/E of 19 sits below NVIDIA's 24, while Marvell Technology competes for the same hyperscaler ASIC sockets. Risks center on customer concentration among a limited number of hyperscale AI customers and expected gross margin compression toward 74% as AI silicon becomes a larger mix.

Impact on stocks 4

Artificial Intelligence± Mixed · 4 stocks
Broadcom Inc
AVGO
▲ PositiveCapitalDemandrelevance

AI revenue surged 221% to $16.70B with Q4 guidance of $21.7B and a BUY rating with $426.10 target.

Meta Platforms Inc.
META
▲ PositiveDemandrelevance

Disclosed a Meta partnership with Broadcom for 3 gigawatts through 2028, signaling continued AI infrastructure buildout.

Theme Impact 7

Off-coverage companies 1

OpenAIPrivate▲ Positive
Demandrelevance

OpenAI committed 1.3 gigawatts in 2027 within a broader 10 gigawatts by 2029 agreement with Broadcom.

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