Broadcom shares are trading at a forward 12-month price-to-earnings multiple of 23.8X, above the Zacks Computer and Technology sector average of 21.53X, prompting a Value Score of D. The stock has returned 20.2% year to date, outperforming NVIDIA's 16.6% but lagging Marvell Technology's 121.5% and Advanced Micro Devices' 149.9%. Broadcom raised its fiscal 2026 AI semiconductor revenue forecast to $56 billion and reiterated expectations for more than $100 billion in AI revenues in fiscal 2027, while guiding gross margin down to 74% in the third quarter from 77.1% in the second quarter due to a greater mix of lower-margin AI semiconductor revenues. AI semiconductor revenues surged 143% year over year to $10.8 billion in the second quarter, with quarterly AI bookings exceeding $30 billion, and the company expects third-quarter AI semiconductor revenues of $16 billion, representing growth of more than 200% year over year. The Zacks Consensus Estimate for third-quarter fiscal 2026 earnings is pegged at $3.22 per share, unchanged over the past 60 days, indicating 90.53% growth from the year-ago quarter, while the fiscal 2026 estimate is $11.74 per share, up by a penny over the past 60 days, indicating 72.14% growth from fiscal 2025.
