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LAS VEGAS, Aug. 31, 2026 (GLOBE NEWSWIRE) -- VMware Explore 2026 -- Broadcom Inc. (NASDAQ: AVGO), a global technology leader that designs, develops, and supplies semiconductor and infrastructure software solutions, today announced TrueSource by Broadcom, a portfolio of commercially supported, verifiably built open source software for the enterprise.

TrueSource brings together Spring Enterprise, the company’s flagship offering for the Spring ecosystem; new TrueSource Trusted Artifacts, which provides secure clean-room builds of the broader Java ecosystem, Python, and Node.js and incorporates a secure catalog of hardened container images; and TrueSource Data Services, a new offering that provides trusted artifacts, support, and deployment expertise for PostgreSQL, RabbitMQ, MySQL, and Valkey data engines.

TrueSource Offerings are Built on Common Principles

Curated, prescriptive, enterprise-grade libraries and artifacts: Every library and artifact is selected against a reference architecture, built, and verified by Broadcom engineers, so enterprises consume open source with confidence.Remediation with maintainers, not around them: Broadcom contributes fixes upstream and backs community maintainers across the industry with engineering time and funding.Patch automation tooling and security visibility: Automation scans customer repositories, assesses the blast radius of each release before they consume it, and opens pull requests that apply the lowest-risk remediation path, with dashboards showing their security team exactly what’s fixed and what remains.Early access with collaboration: Properly licensed customers of any TrueSource offering will have the option to bring not-yet-public vulnerabilities they discover for early access to remediation. In addition, there is a special program for critical infrastructure organizations to get dedicated access to patch insights and mitigation advice. Broadcom Sets the Enterprise Standard with Spring Enterprise
Building on Broadcom’s June commitment to Spring supply chain security, this announcement arrives as AI accelerates exploitation, allowing attackers to weaponize vulnerabilities in hours. While this has fueled interest in fully automated, AI-generated patching, research indicates this approach carries significant operational and security risks.

In new testing, 1Password’s Off-by-1 Labs found that only 26 percent of 6,000 AI-generated patches fixed vulnerabilities without breaking applications. They concluded that automated patches are not yet safe enough to trust without significant human oversight.

Spring Enterprise provides secure, curated releases of Spring from the team that creates and maintains it. That stewardship comes with over 20 years of experience in making compatibility, performance, and security judgements that have allowed Spring to flourish.

Customers receive:

Proactive scanning with human-verified patches: Broadcom engineers continuously scan Spring and its dependency tree with frontier model analysis, then verify every patch by hand, finding vulnerabilities before attackers do. In the past five months, engineers have already spent more than 12 billion tokens against frontier models.Simultaneous patches across every release line: Because Broadcom maintains Spring, every supported release line is patched before a CVE is ever published. Disclosure and remediation for OSS and long term support versions arrive together, so no version is left waiting for a fix.The whole dependency tree, not just Spring: Coverage extends beyond Spring itself to its managed dependencies, including Apache Tomcat, Kotlin, and across the full dependency tree: more than 5,000 verified Java libraries, built and signed at the exact versions pinned by every supported Spring Boot release line.Security fixes without the upgrade: Full point releases bundle fixes with changes that demand testing. CVE-only patches carry the remediation alone, so security teams can push them to production in hours, not weeks. "The world’s most essential businesses run on open source software, and they trust us to keep that foundation secure," said Ram Velaga, president, Infrastructure Software Group, Broadcom. "As AI accelerates both innovation and exploitation, that trust cannot rest on unverified, machine-generated patches. It has to rest on accountable engineering. With TrueSource, we are making a long-term commitment to our customers: our fixes are built and verified by our engineers, working alongside the maintainers who know the code best."

TrueSource Trusted Artifacts Extends Coverage Across Ecosystems
TrueSource Trusted Artifacts provides secure, clean room SLSA Build Level 3 builds of libraries across the Java ecosystem, Python, and Node.js. Broadcom’s curation process ensures that the libraries conform to a reference architecture and are supportable by the maintainers of record. Thousands of engineers across Broadcom’s software divisions scan, fix, contribute to, and consume them every day in the software that runs the world’s most essential businesses. The offering also includes the Bitnami Secure Images catalog, adding hardened, verifiably built container images for hundreds of commonly used open source packages to the same commercial offering.

TrueSource Data Services brings it to the data tier
TrueSource Data Services extends the TrueSource promise to the data engines enterprise applications depend on: PostgreSQL, RabbitMQ, MySQL, and Valkey. A flawed patch can put the data itself at risk, so remediation takes operational judgment. Broadcom brings that judgment, from hardening and supporting these engines for the world’s most demanding enterprises, to curate a validated distribution inclusive of these data engines and the associated critical extensions, Operators and Helm Charts. The offering includes deployment automation for these engines as well as visibility into the security and operational posture.

One Standard Across the Portfolio
The three offerings cover different ecosystems, but they share one design: software that is verifiably built, remediated by accountable engineers, and delivered in partnership with the communities that create it. "Open source security is a human discipline," said Purnima Padmanabhan, vice president and general manager, Tanzu Division, Broadcom. "AI is a phenomenal accelerant for the engineers who maintain this software, not a replacement for them. Maintainers understand the intent behind the code, and that is what separates a real fix from one that just looks like it. TrueSource puts that human expertise at the center of the open source supply chain, at commercial scale."

"AI-generated patching, when applied outside a maintained upstream project, risks producing forks that lack maintainer oversight and long-term accountability," said Katie Norton, Research Director for IDC’s Cloud Security research practice. "Broadcom’s approach with Spring, pairing upstream remediation with human-verified engineering, is one response to this trend, intended to support the integrity and sustainability of the open source supply chain."

Broadcom has already invested behind this position, applying AI where it is effective. As announced in June, its Spring engineering team has scaled frontier model based scanning and validation across the dependency ecosystem, with every resulting fix authored, reviewed, and verified by engineers who know the code. That work answered the more than 1,700 percent surge in monthly security advisories reported by the Spring community and delivered the largest set of security patches in Spring’s 23-year history.

Availability
Spring Enterprise, TrueSource Trusted Artifacts, and TrueSource Data Services are available with simple, tiered site licensing options.

About Broadcom
Broadcom Inc. (NASDAQ: AVGO) is a technology leader that designs, develops, and supplies semiconductors and infrastructure software for global organizations’ complex, mission-critical needs. Broadcom combines long-term R&D investment with superb execution to deliver the best technology, at scale. Broadcom is a Delaware corporation headquartered in Palo Alto, CA. For more information, visit www.broadcom.com.

Broadcom, the pulse logo, and Bitnami are among the trademarks of Broadcom. Postgres and PostgreSQL are registered trademarks of the PostgreSQL Community Association of Canada. MySQL is a registered trademark of Oracle Corporation. Valkey is a trademark of The Linux Foundation. All other trademarks are the property of their respective owners. Broadcom is not affiliated with, endorsed by, or sponsored by any of the foregoing organizations.

Media Contact:

John D’Avolio
Tanzu Division, Broadcom
+1.503.308.3096
[email protected]

LAS VEGAS, Aug. 31, 2026 (GLOBE NEWSWIRE) -- VMware Explore 2026 -- Broadcom Inc. (NASDAQ: AVGO), a global technology leader that designs, develops, and supplies semiconductor and infrastructure software solutions, today announced VMware AI Factory, the software-defined foundation of VMware Private AI Cloud. VMware AI Factory provides customers a simplified path to production AI with new automation innovations for deploying AI-ready infrastructure and supporting Day 2 operations. With VMware AI Factory, customers can achieve faster time to first model deployment and better manage AI tokenomics.

“Enterprises want to run AI where their data lives, but the journey from metal to model is slow, complex, and expensive,” said Paul Turner, chief product officer, VMware Cloud Foundation Division, Broadcom. “VMware AI Factory changes that. We give customers a software-defined foundation that automates infrastructure deployment, unifies lifecycle management, and lets them choose their preferred hardware and vetted models. The result is faster time to first model, predictable private cloud costs, and better control over AI tokenomics.”

VMware AI Factory Accelerates Time to First Model
VMware AI Factory brings AI applications directly to enterprise private data within a secure private cloud environment. VCF’s unique infrastructure automation capabilities can reduce the time from bare metal server deployment to serving the first AI model from weeks to a matter of hours. VMware AI Factory streamlines AI infrastructure management by fully automating hardware provisioning, software stack enablement, and end-to-end lifecycle management. By integrating hardware and software operations into a unified, automated solution, organizations can rapidly scale AI workloads while minimizing operational complexity.

As part of the VMware AI Factory, private AI services help make AI operational, governable, and cost-effective. VCF pools and shares GPU resources across the organization so teams can run multiple models on shared hardware instead of dedicating infrastructure to each workload. A unified model gallery gives IT and data science teams a single interface for deploying and managing model inference and RAG workflows across VMs, containers, and GPU resources, with built-in observability into token throughput, latency, and compute and memory utilization. Enterprises can pivot to new models while keeping costs low through shared infrastructure and governed models-as-a-service. New and forthcoming private AI services include:

Multi-tenant Model Sharing: Model Runtime now supports secure sharing of AI models between tenants or lines of business through isolated namespaces, maintaining data privacy while eliminating redundant model deployments that waste GPU allocation and infrastructure resources.AI Gateway: Unified model governance between on-premises and cloud environments through a single consumption interface, enabling access to locally hosted models with enhancements like intelligent prompt routing, token and usage rate-limiting, and application authorization.Secure AI Sandboxes and Governance: Secure virtualized container spaces will isolate dynamic agent-generated code execution, with a control layer defining how agents are invoked, what tools they access, and how their outputs are validated before being acted upon.
To further streamline VCF AI Factory deployment, Broadcom is announcing a new partnership with MetalSoft to deliver integrated heterogeneous bare metal automation for VCF that drops bare-metal provisioning time from weeks to minutes. The integration will help IT provision or repave physical servers from multiple vendors directly through the VCF management console, unifying the software and hardware lifecycle into a single operational model and eliminating the need for vendor-specific tools for hardware and firmware management.

VMware AI Factory combines VMware Cloud Foundation (VCF) with certified VCF AI ReadyNodes from Cisco, Dell Technologies, Lenovo, Supermicro and others1 and customers’ preferred AI software and accelerator architectures. Broadcom and AMD are collaborating to deliver a VMware AI Factory that pairs VCF with AMD Instinct GPUs and the open AMD ROCm software ecosystem. Zero-touch provisioning will orchestrate the end-to-end deployment of the entire stack, from vSphere and vSAN through Kubernetes and the AMD GPU operator, and the AMD DVX driver can attach GPUs to large VMs consumed by a VMware vSphere Kubernetes Service cluster.

VMware AI Factory gives enterprises a production-ready path to running leading AI models on-premises. VCF customers can run more than 150 open source and commercial models, including Nemotron 3, Gemma 4, cotomi, Qwen 3.7-Max, and GLM 5.2. Broadcom is working with the world’s leading AI model providers to give organizations a clear path to data sovereignty and cost-effective AI at scale, with leading models available securely and delivered as a service to their user community through VCF’s built-in services. Read the full announcement here.

Partner Commentary
“Enterprises adopting AI need freedom to choose their infrastructure without locking into a single vendor stack,” said Suresh Andani, corporate vice president, Compute and Enterprise AI Group, AMD. “Pairing AMD Instinct MI350 Series GPUs with the open ROCm software ecosystem on VMware Cloud Foundation gives customers a validated path to private AI with predictable economics and no per-token pricing. This collaboration lets organizations run production AI where their data lives while maintaining choice and control over their full stack.”

“Moving AI into production requires more than GPUs. It requires an infrastructure stack that operates as one seamless foundation from the data center to the edge,” said Jeremy Foster, Senior Vice President and General Manager, Cisco Compute. “Cisco’s validated compute and an open, high-performance network are aligned with NVIDIA Enterprise Reference Architectures and Cisco Validated Designs with AMD. As we work towards VMware AI Factory’s new infrastructure automation, this will give customers a simpler path from bare metal to production AI, while preserving flexibility in the workloads and accelerator architectures they choose.”

“As enterprises scale AI, token economics is emerging as a critical driver of adoption and ROI,” said Scott Patti, Vice President, Infrastructure Solutions Group, Lenovo. “VMware AI Factory on Lenovo Infrastructure Solutions gives customers the flexibility to run AI where it makes the most economic and operational sense, helping them accelerate production deployments with predictable costs, stronger governance, and greater business value.”

“Supermicro delivers its application-optimized Data Center Building Block Solutions® (DCBBS) infrastructure with the industry-leading time to deployment,” said Vik Maylaya, chief business officer, Supermicro. “Our SuperCloud Director supports faster implementation of multi-tenancy bare metal provisioning, combining Supermicro’s Total IT solutions with VMware AI Factory to give customers factory-validated flexible and cost-efficient building blocks for modern private cloud and AI workloads for the enterprise.”

“Managing physical servers has always been a separate operational domain from software, creating silos that slow down AI infrastructure deployment,” said Lucas Roh, founder and CEO, MetalSoft. “MetalSoft’s bare metal automation now extends VCF’s operational workflows down to the physical layer, letting IT treat physical servers like code. Customers can provision or repave heterogeneous hardware directly through the VCF management console, closing the gap between hardware and software operations and turning weeks of manual work into minutes.”

1-Broadcom Compatibility Guide

Additional Resources

Learn more about VMware Cloud FoundationFollow VMware Cloud Foundation social channels on LinkedIn, X, formerly known as Twitter and YouTube About VMware Explore
VMware Explore is the established cloud event for IT professionals to advance their skills and credentials. VMware Explore 2026 will connect attendees with technology experts and solution architects who are solving real-world challenges. Focused technical sessions, Hands-on Labs, and certification opportunities will enable attendees to apply their learnings and deliver greater value back to their organizations. Attendees will leave with the training, tools, and strategies to build and operate a modern private cloud that is AI-native—running any workload while keeping data local and secure. To learn more about VMware Explore, please visit: https://www.vmware.com/explore

About Broadcom
Broadcom Inc. (NASDAQ: AVGO) is a technology leader that designs, develops, and supplies semiconductors and infrastructure software for global organizations’ complex, mission-critical needs. Broadcom combines long-term R&D investment with superb execution to deliver the best technology, at scale. Broadcom is a Delaware corporation headquartered in Palo Alto, CA. For more information, visit www.broadcom.com.

Broadcom, the pulse logo, and Connecting everything are among the trademarks of Broadcom. The term “Broadcom” refers to Broadcom Inc., and/or its subsidiaries. Other trademarks are the property of their respective owners.

Media Contact:
Roger T. Fortier
VMware Cloud Foundation Division, Broadcom
+1.408.348.1569
[email protected]

NVIDIA NASDAQ: NVDA just blew the doors off with its latest earnings report. Shares soared 8.7% afterward, good for their largest single-day up move in over a year.

Broadcom Today

$368.30 -0.49 (-0.13%)

As of 10:36 AM Eastern

This is a fair market value price provided by Massive. Learn more.

$287.17▼

$495.000.71%

61.32

$491.97

Now, all eyes turn to the world’s next biggest player in the AI semiconductor industry: Broadcom NASDAQ: AVGO.

Get Broadcom alerts:

The company will report earnings on Sept. 2 after the close, and markets are already signaling belief that the firm could have a strong quarter. Notably, Broadcom shares also rose about 4.5% after NVIDIA’s results, a move that is likely tied to the strong AI demand shown in Big Green’s earnings.

However, this by no means ensures that Broadcom’s earnings will receive a similar market reaction to NVIDIA’s. These are the factors that could determine the stock’s post-earnings fate.

Broadcom’s Headline Earnings ExpectationsBeating estimates on revenue, earnings per share (EPS), and guidance for the following quarter will be key to the company impressing markets. Currently, Broadcom’s Q3 2026 sales estimate is $29.43 billion. This figure implies year-over-year (YOY) growth of slightly more than 84%, a large acceleration versus 48% growth last quarter.

At $3.22, the company’s EPS estimate implies growth of approximately 91% YOY, compared to 54% growth last quarter. Sales estimates for fiscal Q4 sit just below $35 billion, implying another acceleration to 94% YOY growth. Notably, Broadcom does not provide specific EPS guidance. However, the company guided for an adjusted earnings before interest, taxes, depreciation, and amortization margin of 68%. Markets will look for Broadcom to at least meet all of these figures and will likely not be satisfied without significant beats.

The most important underlying metric for Broadcom to meet or exceed is its AI semiconductor sales expectations. The company guided for $16 billion in AI chip sales, or 200% YOY growth. However, it is possible that actual market expectations are considerably higher than this.

To Raise or Not to Raise Guidance: Broadcom’s Big DecisionOutside of surpassing expectations on headline figures and underlying metrics, there is one key decision that could determine the market’s reaction to Broadcom’s results. Among the factors that could positively influence investor sentiment, Broadcom's raising its fiscal year 2027 (FY2027) AI semiconductor guidance ranks at the top.

The company is currently guiding for over $100 billion in AI semiconductor revenue in FY2027, a figure that it refused to raise last quarter. This was one of the key factors that caused Broadcom shares to drop nearly 20% in the two days following their last earnings report. Albeit this came as shares were trading very close to their all-time high.

100th Percentile

Moderate Buy

33.4% Upside

Healthy

Strong

1.30 Selling Shares

71.29%

See Full Analysis

There is strong reason to believe that Broadcom’s AI semiconductor guidance could rise well above $100 billion. Notably, Bernstein analyst Stacy Rasgon has estimated that Broadcom’s hyperscaler customers will deploy nine to 10 gigawatts (GW) of its chips in FY2027.

Rasgon also estimates that Broadcom’s content per GW is $20 billion. Together, these numbers would imply $180 billion to $200 billion in AI semiconductor revenue—massively higher than Broadcom’s current guidance. Even using more conservative estimates on content per GW would put AI chip revenue well above $100 billion.

Thus, markets were significantly disappointed that Broadcom did not raise its guidance last quarter, which hit shares particularly hard given their elevated level. However, this could have simply been a reflection of Broadcom’s often conservative stance when it comes to updating guidance. Seeing a substantial FY2027 guidance boost in its next report would likely go a long way in eliciting a positive market reaction.

Dispelling Alphabet Diversification Fears Could Benefit BroadcomAnother key factor that could help Broadcom stock is positive commentary around the relationship with its top AI customer, Alphabet NASDAQ: GOOGL. Broadcom shares have faced pressure due to the belief that MediaTek OTCMKTS: MDTKF, and more recently, Marvell Technology NASDAQ: MRVL, are taking share in Alphabet’s custom chip program.

However, the extent to which these relationships could impact Broadcom’s growth attributable to Alphabet is largely unknown. Broadcom providing commentary that signals the market is overreacting to these developments would also likely aid the stock’s post-earnings reaction. On the other hand, commentary that signals Broadcom is concerned about these developments could hurt the stock.

Analysts Point to Substantial 12-Month Upside in Broadcom as Earnings NearOverall, it is highly difficult to predict whether Broadcom, or any company for that matter, will gain a positive market reaction after its earnings report. Still, investors can take some solace in the fact that over a 12-month forecast timeline, Wall Street analysts see the arrow for Broadcom stock pointing up. As Broadcom’s earnings report quickly approaches, the MarketBeat consensus price target sits near $492, a figure that implies considerable upside in the range of 30%.

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Key Takeaways Broadcom's AI semiconductor revenues surged 143% to $10.8B, with $16B expected in fiscal Q3.Custom XPUs and networking are benefiting from hyperscaler demand and six core AI customer engagements.NVIDIA and AMD are expanding AI infrastructure platforms, intensifying competition for Broadcom. Broadcom’s (AVGO - Free Report) Semiconductor Solutions business is being driven primarily by surging demand for AI infrastructure and is helping the company manage competition from NVIDIA (NVDA - Free Report) and Advanced Micro Devices (AMD - Free Report) . Semiconductor Solutions revenues jumped 79% year over year to a record $15 billion in the second quarter of fiscal 2026, with AI semiconductor revenues jumping 143% to $10.8 billion. AI semiconductor bookings exceeded $30 billion in the reported quarter, considerably higher than shipments, indicating strong demand visibility. Broadcom expects AI semiconductor revenues to reach $16 billion in the third quarter of fiscal 2026, indicating more than 200% year-over-year growth.

The Semiconductor Solutions segment is benefiting from strong demand for Broadcom’s custom XPUs as hyperscalers and frontier AI companies increasingly develop specialized processors for training and inference. The company has long-term engagements with six core AI customers. Broadcom has entered into a multi-generation TPU and networking agreement with Google, while Anthropic is expected to access an additional 5 gigawatts of next-generation TPU-based compute beginning in 2027. OpenAI production is scheduled to begin in late 2026, while Meta has committed to multiple generations of MTIA XPUs.

Broadcom’s leadership in networking products is complementing XPU growth because increasingly large AI clusters require high-bandwidth connectivity between accelerators. Networking accounted for almost 40% of Broadcom’s AI semiconductor revenues in the second quarter of fiscal 2026. AVGO’s portfolio includes 200G and 400G SerDes, Ethernet and PCI Express switches, Tomahawk 6 100-terabit Ethernet switches, co-packaged optics, DSPs, lasers and Jericho fabric solutions. These technologies support both scale-up connectivity inside racks and scale-out connectivity across large AI data centers.

Increasing consumption of AI tokens by enterprises and consumers is driving frontier-model providers to add substantial compute capacity. Broadcom expects this demand to remain strong through 2027 and 2028 as AI workloads expand. The company is also developing its AI XPV platform with Apollo, Blackstone and other investors, targeting more than 20 gigawatts of compute capacity through 2028, which should support greater deployment of Broadcom XPUs and networking chips.

AVGO Faces Tough Competition in the Semiconductor MarketBroadcom is facing stiff competition from NVIDIA and AMD in the semiconductor space.

NVIDIA is intensifying competitive pressure on Broadcom by expanding beyond GPUs into a complete AI-infrastructure platform encompassing CPUs, scale-up and scale-out networking, systems and software. NVIDIA’s Vera Rubin platform combines Vera CPUs, Rubin GPUs, NVLink, InfiniBand or Ethernet and other accelerators, increasing its revenue opportunity per gigawatt from about $18 billion with Hopper to $40 billion with Vera Rubin.

AMD is also becoming a stronger alternative to Broadcom as it expands from CPUs and GPUs into rack-scale AI infrastructure. AMD’s Helios platform integrates EPYC Venice CPUs, MI450-Series GPUs, Pensando networking and ROCm software, creating a more complete AI system competing for the same hyperscaler and frontier-model infrastructure spending targeted by Broadcom’s custom accelerators and networking portfolio.

AVGO’s Share Price Performance, Valuation & EstimatesBroadcom shares have appreciated 6.2% year to date, underperforming the broader Zacks Computer and Technology sector’s return of 15.4%.

AVGO Stock Lags Sector
Image Source: Zacks Investment Research

The AVGO stock is trading at a premium, with a forward 12-month price/sales of 10.38X compared with the broader sector’s 6.31X. Broadcom has a Value Score of D.

AVGO Stock Has a Stretched Valuation
Image Source: Zacks Investment Research

The Zacks Consensus Estimate for fiscal 2026 earnings is pegged at $11.74 per share, unchanged over the past 30 days, suggesting 72.14% growth from the figure reported in fiscal 2025.

Broadcom currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Broadcom Inc (NASDAQ:AVGO) stock fell more than 1.50% on Friday as new semiconductor tariff uncertainty pressured chip stocks and added another risk to the AI infrastructure supply chain.

Technology dropped 1.31%, making it the worst-performing sector, while the S&P 500 slipped just 0.14%. Six sectors traded lower, with the advance-decline ratio at 0.8.

Tariff Uncertainty Pressures Semiconductor StocksThe Trump administration is reportedly considering expanding semiconductor-related tariffs to a broader range of technology products, potentially including laptops, gaming consoles and data-center servers.

The proposal has raised concerns that higher costs and tighter supply could affect the ongoing AI infrastructure buildout.

The White House pushed back on the reports, saying tariff coverage should be considered "baseless speculation" unless officially announced. It also said the administration is pursuing a "nimble, nuanced, and multi-faceted approach" aimed at bringing critical manufacturing back to the U.S.

Broader market sentiment also remained defensive, with the Nasdaq down 0.61% and the Russell 2000 falling 1.26%.

Broadcom slightly outperformed the broader Technology sector but still moved lower alongside other large-cap semiconductor stocks exposed to AI infrastructure demand.

Earnings & Analyst OutlookThe countdown is on: Broadcom is set to report earnings on September 2, 2026 (confirmed).

EPS Estimate: $3.16 (Up from $1.69 YoY) Revenue Estimate: $29.44 Billion (Up from $15.95 Billion YoY) Valuation: P/E of 61.8x (Indicates premium valuation relative to peers) Analyst Consensus & Recent Actions: Broadcom stock carries a Buy rating with an average price forecast of $511.13 (45 analysts), with targets ranging from $400.00 to $582.00. Recent analyst moves include:

RBC Capital: Sector Perform (Maintains Forecast to $400.00) (August 26) BMO Capital: Initiated with Outperform (Forecast $455.00) (August 21) Erste Group: Downgraded to Hold (July 7) Top ETF Exposure iShares Semiconductor ETF (NASDAQ:SOXX): 8.12% Weight First Trust NASDAQ Technology Dividend Index Fund (NASDAQ:TDIV): 8.05% Weight Invesco PHLX Semiconductor ETF (NASDAQ:SOXQ): 9.94% Weight Significance: Because AVGO carries such a heavy weight in these funds, any significant inflows or outflows for these ETFs will likely force automatic buying or selling of the stock.

AVGO Price Action: Broadcom shares were down 1.52% to $365.89 at the time of publication on Friday, according to Benzinga Pro data.

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Alamar Capital Management LLC bought a new stake in Broadcom Inc. (NASDAQ:AVGO – Free Report) in the second quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The firm bought 1,680 shares of the semiconductor manufacturer’s stock, valued at approximately $635,000.

A number of other hedge funds have also made changes to their positions in AVGO. Fullerton Advisors LLC lifted its holdings in Broadcom by 1.3% in the first quarter. Fullerton Advisors LLC now owns 1,989 shares of the semiconductor manufacturer’s stock worth $616,000 after acquiring an additional 25 shares during the last quarter. NORTHSTAR ASSET MANAGEMENT Co boosted its position in shares of Broadcom by 0.5% in the 1st quarter. NORTHSTAR ASSET MANAGEMENT Co now owns 5,350 shares of the semiconductor manufacturer’s stock valued at $1,656,000 after purchasing an additional 25 shares during the period. RFG Holdings Inc. lifted its holdings in shares of Broadcom by 0.3% in the first quarter. RFG Holdings Inc. now owns 8,499 shares of the semiconductor manufacturer’s stock valued at $2,631,000 after purchasing an additional 26 shares in the last quarter. Yukon Wealth Management Inc. grew its holdings in shares of Broadcom by 1.1% during the 1st quarter. Yukon Wealth Management Inc. now owns 2,501 shares of the semiconductor manufacturer’s stock valued at $774,000 after acquiring an additional 26 shares in the last quarter. Finally, NerdWallet Wealth Partners LLC grew its position in Broadcom by 2.6% in the second quarter. NerdWallet Wealth Partners LLC now owns 1,057 shares of the semiconductor manufacturer’s stock worth $399,000 after acquiring an additional 27 shares in the last quarter. Institutional investors and hedge funds own 76.43% of the company’s stock.

More Broadcom News Here are the key news stories impacting Broadcom this week:

Positive Sentiment: Mizuho remains bullish ahead of earnings, citing Broadcom’s nearly uninterrupted 30-quarter earnings track record, deeply negative investor sentiment, and the possibility that CEO Hock Tan will directly address concerns about custom ASIC competition and Google’s in-house chips. Mizuho is bullish on Broadcom ahead of Sept. 2 earnings Positive Sentiment: Broadcom’s partnership with OpenAI on the Jalapeño inference chip highlights demand for specialized AI infrastructure. OpenAI says the chip can deliver substantially better performance per watt than comparison systems, potentially supporting Broadcom’s custom-chip and networking growth. Why BNP thinks Jalapeño could benefit Broadcom stock Positive Sentiment: Analysts argue Broadcom offers a better AI risk-reward profile than AMD because of its broader exposure across custom accelerators, networking, and infrastructure software, along with a comparatively lower valuation. Broadcom vs. AMD: Which AI Chip Stock Has the Better Risk-Reward? Positive Sentiment: A new Kyndryl collaboration expands VMware Cloud Foundation’s reach among enterprise customers, reinforcing Broadcom’s private-cloud and software modernization strategy. Broadcom Kyndryl partnership Neutral Sentiment: Royal Bank of Canada reiterated its “Sector Perform” rating, suggesting balanced expectations rather than a strong near-term catalyst. Royal Bank of Canada reiterates Sector Perform Negative Sentiment: Broadcom is reportedly considering $70 billion to $80 billion of debt financing for an AI chip-related transaction involving companies including Anthropic. The potential borrowing could accelerate growth but raises leverage, execution, and repayment risks. Broadcom nears $70B debt financing deal Negative Sentiment: Investors remain concerned that Google’s and other hyperscalers’ internally designed chips could pressure Broadcom’s custom-silicon revenue. Competition from Marvell, NVIDIA, and AMD adds to the risk, while Broadcom’s elevated earnings multiple leaves less room for disappointment. Marvell and Google custom silicon deal Broadcom Stock Performance Shares of AVGO stock opened at $368.79 on Friday. Broadcom Inc. has a 12 month low of $287.17 and a 12 month high of $495.00. The company has a current ratio of 2.24, a quick ratio of 2.01 and a debt-to-equity ratio of 0.71. The firm has a fifty day simple moving average of $385.07 and a two-hundred day simple moving average of $376.26. The firm has a market capitalization of $1.75 trillion, a PE ratio of 61.47, a price-to-earnings-growth ratio of 0.71 and a beta of 1.45. Broadcom (NASDAQ:AVGO – Get Free Report) last announced its earnings results on Wednesday, June 3rd. The semiconductor manufacturer reported $2.44 earnings per share for the quarter, topping analysts’ consensus estimates of $2.40 by $0.04. The firm had revenue of $22.19 billion for the quarter, compared to the consensus estimate of $22.13 billion. Broadcom had a return on equity of 41.61% and a net margin of 38.85%.The company’s revenue was up 47.9% compared to the same quarter last year. During the same quarter in the previous year, the business earned $1.58 EPS. Analysts forecast that Broadcom Inc. will post 10.24 EPS for the current fiscal year.

Broadcom Announces Dividend The business also recently announced a quarterly dividend, which was paid on Tuesday, June 30th. Stockholders of record on Monday, June 22nd were given a dividend of $0.65 per share. This represents a $2.60 dividend on an annualized basis and a dividend yield of 0.7%. The ex-dividend date of this dividend was Monday, June 22nd. Broadcom’s dividend payout ratio is currently 43.33%.

Insider Activity at Broadcom In other news, Director Justine Page sold 1,602 shares of the firm’s stock in a transaction that occurred on Monday, June 29th. The shares were sold at an average price of $373.86, for a total transaction of $598,923.72. Following the completion of the sale, the director owned 17,426 shares in the company, valued at $6,514,884.36. This trade represents a 8.42% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Gayla J. Delly sold 1,890 shares of the firm’s stock in a transaction on Wednesday, July 8th. The stock was sold at an average price of $385.38, for a total value of $728,368.20. Following the completion of the sale, the director directly owned 31,326 shares of the company’s stock, valued at $12,072,413.88. This represents a 5.69% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last 90 days, insiders have sold 61,644 shares of company stock worth $24,016,214. 1.90% of the stock is currently owned by company insiders.

Analyst Ratings Changes A number of analysts have weighed in on AVGO shares. Cantor Fitzgerald reissued an “overweight” rating and issued a $525.00 price target on shares of Broadcom in a report on Thursday, June 4th. Deutsche Bank Aktiengesellschaft reaffirmed a “buy” rating and set a $515.00 price target (up from $430.00) on shares of Broadcom in a research report on Thursday, June 4th. Bank of America upped their target price on Broadcom from $450.00 to $530.00 and gave the stock a “buy” rating in a report on Thursday, June 4th. Truist Financial raised their target price on shares of Broadcom from $545.00 to $550.00 and gave the stock a “buy” rating in a research note on Thursday, June 4th. Finally, Evercore reaffirmed an “outperform” rating and set a $582.00 price objective on shares of Broadcom in a research report on Tuesday, May 19th. Twenty-nine equities research analysts have rated the stock with a Buy rating and four have given a Hold rating to the stock. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average price target of $491.97.

Read Our Latest Research Report on Broadcom

Broadcom Profile (Free Report)

Broadcom Inc (NASDAQ: AVGO) is a global technology company that designs, develops and supplies semiconductor and infrastructure software solutions for a broad range of markets. The company’s semiconductor business provides components and systems for wired and wireless communications, enterprise and cloud storage, networking and broadband access, serving original equipment manufacturers, cloud service providers, telecommunications carriers and industrial customers worldwide. Broadcom is headquartered in Irvine, California, and operates globally with research, development and sales organizations across North America, Europe and Asia.

On the semiconductor side, Broadcom’s portfolio includes system-on-chip (SoC) and application-specific integrated circuit (ASIC) solutions, radio-frequency and connectivity components, Ethernet switching and PHY devices, storage adapters and controllers, optical transceivers and other networking silicon.

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SummaryBroadcom expects AI semiconductor revenue to jump from about $56 billion in fiscal 2026 to more than $100 billion in fiscal 2027.Broadcom may backstop up to $29 billion of customer lease payments in its first AI financing structure, compared with $10.262 billion of fiscal Q2 free cash flow.Per Bloomberg, Broadcom is reportedly discussing more than $60 billion of AI debt for Anthropic and others, including $30 billion junior and $60-70 billion senior, partly guaranteed by Broadcom.Google signed Broadcom through as late as 2031, then gave Marvell a deal whose warrant can fully vest after $120 billion of qualifying purchases.Despite the above, I'm not bearish on this name. But I don't see enough upside from a momentum perspective, so I downgrade to a hold. Sundry Photography/iStock Editorial via Getty Images

Broadcom Inc. (AVGO) is about to report Q3 earnings on September 2, and I think the focus right now is not on the print.

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Boston Trust Walden Corp raised its stake in Broadcom Inc. (NASDAQ:AVGO – Free Report) by 338.6% in the second quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 107,948 shares of the semiconductor manufacturer’s stock after buying an additional 83,335 shares during the period. Boston Trust Walden Corp’s holdings in Broadcom were worth $40,777,000 at the end of the most recent reporting period.

Other institutional investors have also modified their holdings of the company. Fullerton Advisors LLC boosted its position in Broadcom by 1.3% during the first quarter. Fullerton Advisors LLC now owns 1,989 shares of the semiconductor manufacturer’s stock worth $616,000 after purchasing an additional 25 shares in the last quarter. NORTHSTAR ASSET MANAGEMENT Co increased its position in shares of Broadcom by 0.5% in the first quarter. NORTHSTAR ASSET MANAGEMENT Co now owns 5,350 shares of the semiconductor manufacturer’s stock valued at $1,656,000 after buying an additional 25 shares in the last quarter. RFG Holdings Inc. boosted its position in shares of Broadcom by 0.3% in the 1st quarter. RFG Holdings Inc. now owns 8,499 shares of the semiconductor manufacturer’s stock worth $2,631,000 after buying an additional 26 shares in the last quarter. Yukon Wealth Management Inc. grew its stake in Broadcom by 1.1% in the 1st quarter. Yukon Wealth Management Inc. now owns 2,501 shares of the semiconductor manufacturer’s stock valued at $774,000 after acquiring an additional 26 shares during the last quarter. Finally, NerdWallet Wealth Partners LLC grew its stake in Broadcom by 2.6% in the 2nd quarter. NerdWallet Wealth Partners LLC now owns 1,057 shares of the semiconductor manufacturer’s stock valued at $399,000 after acquiring an additional 27 shares during the last quarter. Hedge funds and other institutional investors own 76.43% of the company’s stock.

Broadcom Stock Performance Shares of NASDAQ AVGO opened at $368.45 on Monday. The company has a 50-day simple moving average of $388.57 and a 200-day simple moving average of $375.10. The company has a debt-to-equity ratio of 0.71, a current ratio of 2.24 and a quick ratio of 2.01. The company has a market cap of $1.75 trillion, a PE ratio of 61.41, a price-to-earnings-growth ratio of 0.70 and a beta of 1.45. Broadcom Inc. has a 12 month low of $287.17 and a 12 month high of $495.00.

Broadcom (NASDAQ:AVGO – Get Free Report) last announced its quarterly earnings data on Wednesday, June 3rd. The semiconductor manufacturer reported $2.44 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.40 by $0.04. Broadcom had a net margin of 38.85% and a return on equity of 41.61%. The business had revenue of $22.19 billion for the quarter, compared to the consensus estimate of $22.13 billion. During the same quarter in the prior year, the firm posted $1.58 earnings per share. The company’s quarterly revenue was up 47.9% compared to the same quarter last year. On average, equities analysts anticipate that Broadcom Inc. will post 10.24 earnings per share for the current year. Broadcom Dividend Announcement The firm also recently declared a quarterly dividend, which was paid on Tuesday, June 30th. Shareholders of record on Monday, June 22nd were paid a dividend of $0.65 per share. This represents a $2.60 dividend on an annualized basis and a dividend yield of 0.7%. The ex-dividend date of this dividend was Monday, June 22nd. Broadcom’s dividend payout ratio is currently 43.33%.

More Broadcom News Here are the key news stories impacting Broadcom this week:

Positive Sentiment: AI financing deal could expand Broadcom’s growth opportunity: Broadcom is reportedly discussing $70 billion to $80 billion of debt financing—potentially approaching $100 billion—to provide AI chips to Anthropic and other companies. The arrangement could support substantial future chip demand, although the financing remains under discussion. Broadcom debt deal expected to reach upwards of $70 billion Positive Sentiment: Analysts remain constructive: BMO initiated coverage with an “outperform” rating and a $455 price target, implying meaningful upside from recent levels. Other recent commentary also argues that Broadcom’s AI cycle and long-term custom-chip position could support further gains. Broadcom Stock Picks Up Another Lofty Bull Note Positive Sentiment: Strong AI demand underpins the bullish case: Reports cite approximately $30 billion in quarterly AI bookings and management’s goal of exceeding $100 billion in AI sales by 2027. Broadcom’s latest reported quarter also showed 47.9% year-over-year revenue growth, reinforcing the company’s momentum. Broadcom’s AI Boom: Is a 2x Stock Gain Still Within Reach? Neutral Sentiment: Debt-funded expansion introduces execution and balance-sheet risk: Borrowing tens of billions of dollars could accelerate AI infrastructure growth, but it would also increase leverage and financing costs if customer demand or deal economics disappoint. Broadcom reportedly eyes nearly $100 billion debt package Negative Sentiment: Marvell’s Google partnership threatens Broadcom’s custom AI-chip dominance: Marvell’s agreement covers products connected to Google’s TPU ecosystem, including inference accelerators and networking components. Google also received warrants that could align it more closely with Marvell, raising concerns about future share loss for Broadcom despite Broadcom’s existing multiyear Google partnership. Marvell Constructs an AI Moat With Alphabet Warrants Analyst Ratings Changes AVGO has been the subject of a number of research reports. Wall Street Zen cut shares of Broadcom from a “strong-buy” rating to a “buy” rating in a research report on Saturday, July 18th. Deutsche Bank Aktiengesellschaft reissued a “buy” rating and set a $515.00 price objective (up from $430.00) on shares of Broadcom in a research note on Thursday, June 4th. Cantor Fitzgerald restated an “overweight” rating and set a $525.00 price objective on shares of Broadcom in a research report on Thursday, June 4th. Oppenheimer reaffirmed an “outperform” rating and issued a $535.00 target price (up from $450.00) on shares of Broadcom in a research note on Thursday, June 4th. Finally, Wells Fargo & Company reiterated an “overweight” rating and set a $545.00 target price (up from $430.00) on shares of Broadcom in a report on Thursday, May 14th. Twenty-nine equities research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average target price of $491.97.

View Our Latest Research Report on AVGO

Insiders Place Their Bets In related news, Director Gayla J. Delly sold 1,890 shares of the company’s stock in a transaction on Wednesday, July 8th. The stock was sold at an average price of $385.38, for a total value of $728,368.20. Following the completion of the transaction, the director directly owned 31,326 shares in the company, valued at approximately $12,072,413.88. This represents a 5.69% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, insider Mark David Brazeal sold 25,000 shares of Broadcom stock in a transaction on Friday, July 10th. The shares were sold at an average price of $401.33, for a total transaction of $10,033,250.00. Following the completion of the transaction, the insider owned 194,989 shares in the company, valued at approximately $78,254,935.37. This trade represents a 11.36% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 61,644 shares of company stock worth $24,016,214 in the last three months. Company insiders own 1.90% of the company’s stock.

Broadcom Profile (Free Report)

Broadcom Inc (NASDAQ: AVGO) is a global technology company that designs, develops and supplies semiconductor and infrastructure software solutions for a broad range of markets. The company’s semiconductor business provides components and systems for wired and wireless communications, enterprise and cloud storage, networking and broadband access, serving original equipment manufacturers, cloud service providers, telecommunications carriers and industrial customers worldwide. Broadcom is headquartered in Irvine, California, and operates globally with research, development and sales organizations across North America, Europe and Asia.

On the semiconductor side, Broadcom’s portfolio includes system-on-chip (SoC) and application-specific integrated circuit (ASIC) solutions, radio-frequency and connectivity components, Ethernet switching and PHY devices, storage adapters and controllers, optical transceivers and other networking silicon.

Recommended Stories Five stocks we like better than Broadcom VIG, VYM, and VYMI: Which Vanguard Dividend ETF Is Right for You? 3 Closed-End Funds to Maximize Dividend Payments Rocket Lab’s Sell-Off Is Fading—Is It Finally Safe to Buy? $27 Billion in Buybacks: 3 Stocks Betting Their Strong Runs Aren’t Over Want to see what other hedge funds are holding AVGO? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Broadcom Inc. (NASDAQ:AVGO – Free Report).

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Cornerstone Capital Inc. bought a new stake in Broadcom Inc. (NASDAQ:AVGO – Free Report) during the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund bought 1,715 shares of the semiconductor manufacturer’s stock, valued at approximately $648,000.

Several other hedge funds also recently bought and sold shares of the company. ROSS JOHNSON & Associates LLC increased its stake in shares of Broadcom by 1,320.0% during the 4th quarter. ROSS JOHNSON & Associates LLC now owns 71 shares of the semiconductor manufacturer’s stock worth $25,000 after purchasing an additional 66 shares during the last quarter. SWAN Capital LLC lifted its stake in shares of Broadcom by 261.9% in the 4th quarter. SWAN Capital LLC now owns 76 shares of the semiconductor manufacturer’s stock valued at $26,000 after purchasing an additional 55 shares during the last quarter. Networth Advisors LLC lifted its stake in shares of Broadcom by 546.2% in the 1st quarter. Networth Advisors LLC now owns 84 shares of the semiconductor manufacturer’s stock valued at $26,000 after purchasing an additional 71 shares during the last quarter. Nvest Wealth Strategies Inc. bought a new stake in Broadcom in the fourth quarter worth $33,000. Finally, Cherry Tree Wealth Management LLC boosted its holdings in Broadcom by 44.9% in the fourth quarter. Cherry Tree Wealth Management LLC now owns 129 shares of the semiconductor manufacturer’s stock worth $45,000 after purchasing an additional 40 shares in the last quarter. 76.43% of the stock is owned by institutional investors and hedge funds.

More Broadcom News Here are the key news stories impacting Broadcom this week:

Positive Sentiment: AI financing deal could expand Broadcom’s growth opportunity: Broadcom is reportedly discussing $70 billion to $80 billion of debt financing—potentially approaching $100 billion—to provide AI chips to Anthropic and other companies. The arrangement could support substantial future chip demand, although the financing remains under discussion. Broadcom debt deal expected to reach upwards of $70 billion Positive Sentiment: Analysts remain constructive: BMO initiated coverage with an “outperform” rating and a $455 price target, implying meaningful upside from recent levels. Other recent commentary also argues that Broadcom’s AI cycle and long-term custom-chip position could support further gains. Broadcom Stock Picks Up Another Lofty Bull Note Positive Sentiment: Strong AI demand underpins the bullish case: Reports cite approximately $30 billion in quarterly AI bookings and management’s goal of exceeding $100 billion in AI sales by 2027. Broadcom’s latest reported quarter also showed 47.9% year-over-year revenue growth, reinforcing the company’s momentum. Broadcom’s AI Boom: Is a 2x Stock Gain Still Within Reach? Neutral Sentiment: Debt-funded expansion introduces execution and balance-sheet risk: Borrowing tens of billions of dollars could accelerate AI infrastructure growth, but it would also increase leverage and financing costs if customer demand or deal economics disappoint. Broadcom reportedly eyes nearly $100 billion debt package Negative Sentiment: Marvell’s Google partnership threatens Broadcom’s custom AI-chip dominance: Marvell’s agreement covers products connected to Google’s TPU ecosystem, including inference accelerators and networking components. Google also received warrants that could align it more closely with Marvell, raising concerns about future share loss for Broadcom despite Broadcom’s existing multiyear Google partnership. Marvell Constructs an AI Moat With Alphabet Warrants Wall Street Analyst Weigh In Several equities analysts have commented on AVGO shares. JPMorgan Chase & Co. increased their target price on shares of Broadcom from $500.00 to $580.00 and gave the stock an “overweight” rating in a research report on Thursday, June 4th. Mizuho boosted their price target on Broadcom from $480.00 to $530.00 and gave the stock an “outperform” rating in a research report on Thursday, June 4th. Evercore reiterated an “outperform” rating and set a $582.00 price target on shares of Broadcom in a research note on Tuesday, May 19th. TD Cowen reissued a “buy” rating and set a $500.00 price objective on shares of Broadcom in a report on Thursday, June 4th. Finally, Citigroup reissued a “buy” rating on shares of Broadcom in a research note on Thursday, June 4th. Twenty-nine investment analysts have rated the stock with a Buy rating and four have given a Hold rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average price target of $491.97. Check Out Our Latest Analysis on AVGO

Broadcom Price Performance NASDAQ AVGO opened at $368.45 on Monday. The stock has a 50-day simple moving average of $388.57 and a 200 day simple moving average of $375.10. Broadcom Inc. has a twelve month low of $287.17 and a twelve month high of $495.00. The stock has a market capitalization of $1.75 trillion, a PE ratio of 61.41, a P/E/G ratio of 0.70 and a beta of 1.45. The company has a debt-to-equity ratio of 0.71, a quick ratio of 2.01 and a current ratio of 2.24.

Broadcom (NASDAQ:AVGO – Get Free Report) last released its earnings results on Wednesday, June 3rd. The semiconductor manufacturer reported $2.44 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.40 by $0.04. The firm had revenue of $22.19 billion for the quarter, compared to analyst estimates of $22.13 billion. Broadcom had a return on equity of 41.61% and a net margin of 38.85%.The company’s revenue was up 47.9% on a year-over-year basis. During the same quarter last year, the firm posted $1.58 EPS. Research analysts anticipate that Broadcom Inc. will post 10.24 EPS for the current year.

Broadcom Dividend Announcement The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, June 30th. Stockholders of record on Monday, June 22nd were given a $0.65 dividend. This represents a $2.60 annualized dividend and a dividend yield of 0.7%. The ex-dividend date of this dividend was Monday, June 22nd. Broadcom’s dividend payout ratio is currently 43.33%.

Insider Activity at Broadcom In other news, Director Justine Page sold 1,602 shares of the firm’s stock in a transaction on Monday, June 29th. The shares were sold at an average price of $373.86, for a total value of $598,923.72. Following the sale, the director owned 17,426 shares in the company, valued at approximately $6,514,884.36. This trade represents a 8.42% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, Director Gayla J. Delly sold 1,890 shares of the business’s stock in a transaction on Wednesday, July 8th. The stock was sold at an average price of $385.38, for a total transaction of $728,368.20. Following the transaction, the director directly owned 31,326 shares in the company, valued at $12,072,413.88. This trade represents a 5.69% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last three months, insiders have sold 61,644 shares of company stock worth $24,016,214. Insiders own 1.90% of the company’s stock.

About Broadcom (Free Report)

Broadcom Inc (NASDAQ: AVGO) is a global technology company that designs, develops and supplies semiconductor and infrastructure software solutions for a broad range of markets. The company’s semiconductor business provides components and systems for wired and wireless communications, enterprise and cloud storage, networking and broadband access, serving original equipment manufacturers, cloud service providers, telecommunications carriers and industrial customers worldwide. Broadcom is headquartered in Irvine, California, and operates globally with research, development and sales organizations across North America, Europe and Asia.

On the semiconductor side, Broadcom’s portfolio includes system-on-chip (SoC) and application-specific integrated circuit (ASIC) solutions, radio-frequency and connectivity components, Ethernet switching and PHY devices, storage adapters and controllers, optical transceivers and other networking silicon.

Recommended Stories Five stocks we like better than Broadcom VIG, VYM, and VYMI: Which Vanguard Dividend ETF Is Right for You? 3 Closed-End Funds to Maximize Dividend Payments Rocket Lab’s Sell-Off Is Fading—Is It Finally Safe to Buy? $27 Billion in Buybacks: 3 Stocks Betting Their Strong Runs Aren’t Over

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Marvell Technology (MRVL -5.57%) disclosed an expanded custom chip agreement with Google on Aug. 19, complete with a warrant tied to as much as $120 billion of future purchases -- and investors in Broadcom (AVGO +1.21%) treated the news as their problem. Broadcom, which designs the in-house TPU chips of Google parent Alphabet (GOOG +1.05%)(GOOGL +1.22%), saw its shares fall about 5% that morning.

The logic of the selling was straightforward. Google, arguably the most important customer in Broadcom's custom artificial intelligence (AI) chip business, is deepening its relationship with Broadcom's most direct rival.

But Broadcom has faced this kind of headline before -- a marquee customer moving to design Broadcom parts out of its products. I think it is worth walking through what happened next before concluding anything from a one-day drop.

Image source: The Motley Fool.

A selective sell-offThe move itself deserves scrutiny. Chip stocks fell unevenly on the morning of Aug. 19. AMD dropped about 4%, Nvidia was roughly flat, and Marvell itself jumped about 8%. The pressure landed hardest on Broadcom, the supplier with the most Google work at stake -- consistent with investors repricing who wins Google's future orders rather than fleeing the sector.

And Google has not left Broadcom. The verified news is an expansion of work with Marvell.

Broadcom itself announced in April a new long-term agreement to develop Google's future TPU generations, alongside a deal to supply components for Google's AI racks through as late as 2031. Google appears to be adding a second silicon partner, not replacing its first.

The Apple precedentThe last time Broadcom faced a design-away scare, the customer was its biggest one. In January 2023, Bloomberg reported that Apple (AAPL -0.63%) planned to drop the Broadcom combination chip that handled Wi-Fi and Bluetooth in its devices by 2025 and use an in-house design instead. Apple accounted for about 20% of Broadcom's net revenue in fiscal 2022 and 2023, according to Broadcom's annual filing -- roughly $7 billion a year at the time.

The displacement happened, eventually. Apple introduced its own N1 wireless chip in the iPhone 17 lineup in September 2025, nearly three years after the report.

But three other things happened along the way. Four months after the report, Apple announced a separate multiyear, multibillion-dollar deal for Broadcom to keep building 5G radio-frequency components, including filters, in the U.S. Losing one chip didn't mean losing the customer -- and last month Broadcom disclosed an agreement extending that chip supply relationship through 2031. Broadcom's revenue then nearly doubled, from $35.8 billion in fiscal 2023 to $63.9 billion in fiscal 2025, as AI demand overwhelmed everything else. And the stock? It closed at a split-adjusted $57.69 the day the Bloomberg report ran. It trades near $362 as of this writing, up more than 500%.

This time the risk sits in the AI businessSo the precedent says these announcements take years to play out. The Google-Marvell agreement fits that pattern. Its vesting schedule stretches to January 2033, and the disclosure describes chip programs built to plug into Google's TPU ecosystem, not a wholesale replacement of it.

Still, the parallel is not perfect, and the difference matters. The Apple risk sat in wireless components, a mature side business, while AI custom chips drove the growth that swamped it. Google sits inside that AI franchise itself. Broadcom's AI semiconductor revenue reached $10.8 billion in its fiscal second quarter (the period ended May 3, 2026), up 143% year over year on total revenue that rose 48% to $22.2 billion, and net income nearly doubled to $9.3 billion. Management guided for $16.0 billion of AI semiconductor revenue in the fiscal third quarter, up more than 200%.

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Broadcom doesn't disclose Google's share, but its top five customers accounted for about 40% of total net revenue in fiscal 2025. A shift in Google's orders could touch the growth line investors are paying for, not a side business.

To me, that concentration is worth taking seriously at Broadcom's valuation. Even after the decline, shares cost about 60 times earnings and sit about 27% below their 52-week high.

History's lesson from the Apple episode is that these transitions are slow and partial -- Broadcom grew straight through the last one. The same patience, I'd argue, applies here in both directions: the Aug. 19 drop doesn't prove the damage, and Broadcom's April agreement doesn't prove there is none. What settles it is Broadcom's AI revenue in the quarters ahead, and that evidence arrives on earnings days, not in a one-day sell-off.

D.E. Shaw & Co. disclosed a brand new position in SpaceX (NASDAQ:SPCX | SPCX Price Prediction) worth $912,392,400 and trimmed its stake in Broadcom (NASDAQ:AVGO) by 58.3% in the same quarterly filing, according to the firm’s Form 13F-HR filed August 14, 2026 for the period ending June 30.

These are two separate line items in a book of 4,833 positions, alongside 977 new positions, 1,734 added, 1,595 trimmed and 614 exited in the quarter. Read them as parallel data points, not a linked trade.

The SpaceX Line Item The filing lists 5,340,000 shares of SPCX common valued at $912,392,400, representing 0.434% of the portfolio. This is a first-time entry, so no prior-quarter comparison exists.

SpaceX completed its IPO on June 12, 2026 at a reported price of $135, widely reported as the largest IPO ever. The stock closed at $146.05 on August 17, 2026, but it is down 13.02% from its June 12 debut through August 14. Market cap sits near $1.13 trillion. Fundamentally, Q2 2026 revenue came in at $7.81 billion, with Starlink subscribers doubling to 12.0 million and adjusted EBITDA of $3.54 billion, up 191%. Backlog stands at $47.50 billion, and CapEx ran $18.37 billion in the quarter.

The Broadcom Line Item D.E. Shaw held 2,722,161 Broadcom shares valued at $1,028,296,318 as of June 30, a share change of -3,805,547. The firm reduced but did not fully exit the position. The firm still owned more than a billion dollars of Broadcom at quarter end.

Broadcom’s Q2 FY2026 was strong on its face: revenue of $22.2 billion, up 48% year over year, with AI semiconductor revenue of $10.8 billion, up 143%. CEO Hock Tan called demand “insatiable” and guided Q3 AI semi revenue to $16 billion. But gross margin is compressing from 77.1% toward roughly 74% as the AI mix grows, and shares have fallen 8.13% in the past week even as they hold a 13.97% YTD gain. Polymarket assigns only a 21.5% probability that Q3 AI revenue exceeds $18 billion, implying the guide is largely priced in.

Should Retirement Investors Follow? D.E. Shaw is a quantitative, systematic, multi-strategy firm, and these are firm-level positions, not personal conviction picks by David E. Shaw. The firm also carries two-sided options exposure. Same filing: Microsoft (NASDAQ:MSFT) PUT positions of 1,446,200 shares valued $539,461,524. A single long equity line is not automatically a directional endorsement, and 13F data is reported roughly 45 days after quarter end. Positions may already have changed.

For a retirement-focused investor, the read is that a quant fund’s disclosed line item is thin evidence for a buy-and-hold decision. SPCX is a newly listed stock trading below its debut with a very short price history, and Broadcom’s setup rewards conviction on AI capex durability (we profiled seven suppliers riding that same buildout, from power to cooling, in a free report you can grab here). Weigh each on its own merits. This article is not investment advice.

Contact [email protected] for any questions or corrections.

Broadcom (NASDAQ:AVGO | AVGO Price Prediction) has become the second most consequential AI infrastructure story on the market, powered by $30 billion in quarterly AI bookings and management’s stated goal to exceed $100 billion in AI sales by 2027. With shares trading at $364.50, the question is whether the AI numbers justify a run back to the highs, or something bigger.

Our 24/7 Wall St. price target for Broadcom is $403 over the next 12 months, with a bull scenario reaching $531.88. That is a buy rating with high confidence.

24/7 Wall St. Price Target Summary Metric Value Current Price $364.50 24/7 Wall St. Price Target $403 Upside 10.65% Recommendation BUY Confidence Level 90% Why AVGO Just Slid 13% in a Week Broadcom is down 12.88% over the past week and 4.15% over the past month, though shares remain up 23.81% over the past year and up 737.96% over five years.

The pullback follows a strong Q2 FY2026 report. Revenue hit $22.19 billion, up 47.87% year over year, with AI semiconductor revenue reaching $10.80 billion, up 143%. Non-GAAP EPS of $2.44 extended an eight-quarter EPS beat streak.

Management guided Q3 revenue to approximately $29.4 billion, up 84% year over year. Shares traded off, reflecting valuation digestion at 60x trailing earnings.

Why Bulls See a Path to $530 and Beyond The bull case is straightforward. Broadcom booked over $30 billion in AI semiconductor orders in Q2 against $10.8 billion shipped, and CEO Hock Tan called demand for XPUs and networking “simply insatiable.”

Management expects $56 billion of fiscal 2026 AI revenue, then in excess of $100 billion in fiscal 2027, with visibility extending into 2028. A $35 billion first tranche of a planned 20-gigawatt AI XPV platform with Apollo and Blackstone amplifies the addressable pipeline.

All of that hyperscaler buildout has to be powered, cooled, and networked by somebody, and we pulled together seven suppliers doing exactly that in a free report here: 7 Stocks Powering the AI Boom (That Aren’t Chipmakers).

Analysts lag. Seven Strong Buy and 37 Buy ratings point to a $527.88 consensus, and Polymarket assigns a 75% probability that Q3 AI revenue will exceed $16 billion. A rerating to 30x forward EPS of $12 would put AVGO north of $360 on 2026 numbers alone. Doubling from here requires 2027 EPS closer to $20 at a similar multiple, which the $100 billion AI trajectory arguably supports.

What Could Derail the Setup Concentration is the sharpest risk. A handful of hyperscalers, including Google, Meta, OpenAI, and Anthropic, drive Broadcom’s XPU roadmap, and Google is expected to maintain diversity of sources.

Consolidated gross margin is expected to compress to approximately 74% as semiconductor mix rises, though management stressed the shift “does not represent a structural change in semiconductor margin.”

Reddit sentiment on wallstreetbets has turned bearish, and insider activity is net selling. A bear-case pullback to $358.80 is our downside anchor.

How Broadcom Compares to NVIDIA and Marvell NVIDIA (NASDAQ:NVDA) is the general-purpose GPU incumbent Broadcom’s custom XPUs are designed to undercut for hyperscale-specific workloads. NVIDIA’s Q1 FY2027 revenue reached $81.61 billion, up 85.2%, at a trailing P/E of 44. That multiple sits below Broadcom’s 60x trailing figure. However, Broadcom trades at a forward P/E of 20, which is cheaper than NVIDIA on forward earnings and supports our target.

Marvell Technology (NASDAQ:MRVL) is Broadcom’s most direct rival in custom AI silicon and AI networking optics. Marvell posted Q1 FY2027 revenue of $2.42 billion, up 27.6%, well below Broadcom’s 47.9% growth rate. Broadcom’s superior growth, margins, and customer roster make our $403 target look conservative against the peer set.

Broadcom Price Prediction 2026-2030 My verdict is a buy with 90% confidence and a 24/7 Wall St. price target of $403. The scale tips on AI booking visibility extending through 2028. I would add here if Q3 delivers on the $16 billion AI number. I would stay patient if gross margin compression accelerates faster than semiconductor mix warrants.

Year 24/7 Wall St. Price Target 2026 $403 2027 $455 2028 $495 2029 $515 2030 $525 These projections assume Broadcom executes on the $100 billion AI target and completes VMware’s subscription conversion. Faster hyperscaler XPU adoption could pull the bull case forward.

Contact [email protected] for any questions or corrections.

Broadcom Inc (NASDAQ:AVGO, XETRA:1YD), the US semiconductor company, is in talks to raise more than $60 billion in debt to fund a financing deal that would supply AI chips to Anthropic and other companies.

That is according to Bloomberg, which cited people familiar with the matter.

The talks point to the scale of borrowing now being lined up to build out AI computing capacity.

How the deal is structured

The financing could include a junior debt tranche of roughly $30 billion, according to the report.

A tranche is a slice of a larger borrowing, each carrying its own risk and repayment terms.

Broadcom would guarantee part of a senior-secured tranche that could range from about $60 billion to $70 billion.

Senior-secured debt ranks first for repayment and is backed by specific assets, making it lower risk than junior debt.

Taken together, the sums under discussion could bring the total raise to as much as $100 billion.

A deal of that size would rank among the largest corporate financings tied to the AI boom.

Who is involved

Blackstone and Apollo Global Management (NYSE:APO), two of the largest US private capital firms, are in talks to take part in the financing.

Their involvement would follow a partnership the three companies struck in June.

Private capital firms have moved increasingly into lending for AI infrastructure as banks reach the limits of what they will underwrite alone.

Broadcom, Apollo and Blackstone did not immediately respond to requests for comment on the Bloomberg report.

The figures under discussion have not been formally confirmed.

Why it matters for Anthropic

The deal would channel funding towards chips for Anthropic, the company behind the Claude chatbot.

Access to computing power has become one of the biggest constraints on AI companies, and securing it often requires financing on a scale usually seen in energy or infrastructure projects.

Anthropic is separately preparing to file paperwork for an initial public offering that could rival the record set by SpaceX.

Borrowing arrangements of this kind allow AI firms to lock in chip supply without carrying the full cost on their own balance sheets.

The reported talks underline how far the industry now depends on outside capital to keep pace with demand.

Only two of Ark Invest's exchange-traded funds (ETFs) have beaten the market year to date. The flagship Ark Innovation ETF (ARKK +2.25%) is up just 3% in 2026, well behind the S&P 500's 12.5% gain. Still, Ark founder and Chief Executive Officer Cathie Wood is leaning into her conviction that some of the biggest long-term gains will come from the companies building the infrastructure powering artificial intelligence (AI).

During Aug. 10's sell-off, Wood bought more shares of Nvidia (NVDA -0.77%) and Broadcom (AVGO -5.25%). Let's take a closer look at why Ark Invest might have bought more shares -- and whether investors should follow its lead.

Image source: Getty Images.

Several Ark funds added Nvidia, buying a combined 122,422 shares -- about $27 million -- across five ETFs. After dipping on Monday, the stock ended the week of Aug. 14 slightly higher and is now up 18% year to date, hovering near fresh highs.

Ark's view is that we're still early in the AI infrastructure build-out. The firm estimates global AI spending could reach as much as $1.5 trillion by 2030, and Wood appears to see Nvidia as one of the biggest beneficiaries. Even as competition heats up, Nvidia has remained on the cutting edge of computing systems.

Nvidia is leaning into integrated server platforms that combine multiple chip types to improve efficiency for advanced "agentic," or autonomous, AI workloads. The result is a product stack that's harder to replace than a stand-alone chip. Revenue rose 92% year over year last quarter, and analysts expect full-year revenue to reach $393 billion, representing growth of 82% versus last year.

At roughly 25 times this year's average earnings estimate and 18 times next year's, Wood seems to view the stock's valuation as reasonable relative to Nvidia's momentum.

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Broadcom Two Ark funds -- Ark Innovation and the Ark Autonomous Technology & Robotics ETF -- added more Broadcom stock, buying 39,020 shares for roughly $16.5 million. The shares fell about 8% for the week ended Aug. 14, but are up about 8% year to date.

Ark isn't only betting on Nvidia's GPUs (graphics processing units). The firm also expects strong demand for Broadcom's custom AI chips -- ASICs (application specific integrated circuits) and other accelerators (XPUs) -- as hyperscalers invest in silicon tailored to their own workloads. Ark believes these specialized chips could capture a growing share of AI computing, potentially approaching a third of the market by 2030.

That dynamic makes Broadcom both a bet on rising AI spend and a partial hedge if Nvidia's share gradually declines. By owning both stocks, an investor gains broader exposure to the growing demand for AI chips. Broadcom is benefiting from large customers who want more control over cost, supply, and performance -- and to reduce dependence on a single vendor. Three of Broadcom's biggest customers include Google, Anthropic, and OpenAI.

Broadcom expects AI chip revenue to reach $56 billion in fiscal 2026 and to rise above $100 billion the following year. With the stock trading at about 20 times next year's average earnings estimate, Wood appears to see an attractive setup for more gains.

Is now the time to buy these stocks? Even if Broadcom's custom chips continue to gain share, a fast-growing market can still reward both companies. Nvidia doesn't need to own every incremental dollar of AI spending to deliver strong returns. Looking out to 2030, Ark Invest believes Nvidia will still account for most of the computing-power market.

The bigger risk for both stocks is a temporary lull in AI infrastructure spending, which would likely create a big sell-off in these stocks. Still, for an investor who believes the next 10 years will see significant growth for the chip industry, Nvidia and Broadcom are offering attractive valuations. These are compelling stocks to buy for a growth-oriented investment portfolio, but the prudent approach is to size positions to ride out the volatility inherent in high-growth, AI stocks.

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The connectivity layer of AI infrastructure has become the most reliable profit center in the buildout. While attention concentrates on GPUs and hyperscaler capex, the switches, optics, and custom networking silicon that stitch clusters together are compounding at rates rivaling accelerator vendors. Three names have separated from the pack: an Ethernet fabric specialist, a custom silicon giant with a networking moat, and a rising optical interconnect leader. Each posted a beat-and-raise in its most recent quarter, and each is priced for continued acceleration.

Here is the bull case for each, backed by the numbers. The networking layer is exactly the kind of non-GPU AI exposure we mapped in a free report on seven suppliers powering the buildout, from power and cooling to the fabric itself.

Arista Networks (ANET): The Ethernet Fabric Leader Arista Networks (NYSE:ANET | ANET Price Prediction) has become the default choice for hyperscalers standardizing on Ethernet-based AI fabrics. Shares are trading at $201.80, up 19.68% over the past month and 54.01% year to date.

The Q2 FY26 earnings report on August 4, 2026 confirmed the thesis. Revenue reached just over $3 billion, up 37.7% year over year, with non-GAAP EPS of $1.02 against a $0.89 estimate. It was Arista’s fifth consecutive EPS beat. Full-year revenue guidance was raised to $12.6 billion, representing 40% annual growth, and the AI fabrics goal moved to at least $3.5 billion.

CEO Jayshree Ullal framed the scale plainly: "Our AI fabrics momentum with EtherLink switches now exceeds 100 cumulative customers from the initial four to five customers I spoke of in 2024." The 7060XE7 platform delivers 100 terabit capacity and 1.6 terabit throughput with first liquid cooling options, and multi-year purchase commitments have nearly tripled from a year ago at $3.6 billion to approximately $9.7 billion by the end of Q2 2026. Analyst sentiment is uniform: 97% bullish with 29 buy/strong buy ratings and zero sells, with a target of $241.82.

Risk to watch: Customer concentration remains real. Ullal expects "one, maybe two, 10% customers", and any Microsoft or Meta pause would ripple. A trailing P/E near 72 leaves little room for stumbles.

Broadcom (AVGO): Custom Silicon Plus a Networking Moat Broadcom (NASDAQ:AVGO) sits at the intersection of custom AI accelerators and the switching silicon that clusters them. The stock trades at $392.43, up 13.80% year to date, though it has pulled back 7.10% over the past week.

Q2 FY26, reported June 3, 2026, delivered $22.2 billion in revenue, up 48% year on year, with AI semiconductor revenue of $10.8 billion, up 143%. Networking made up almost 40% of Q2 AI revenue, where the durable moat lives. CEO Hock Tan put it directly: "While we have significant IP and execution leadership in XPUs, networking is key to building scalable XPU and GPU clusters. And here in networking, we have at least one generation of technology and product leadership."

Q3 guidance calls for $29.4 billion in revenue, up 84% year on year, with AI semiconductor revenue accelerating to $16 billion, up over 200%. Six core hyperscaler customers, including Google, Anthropic, OpenAI, and Meta, have multi-gigawatt commitments, and Broadcom is planning to ship 10 gigawatts in FY2027. Q2 free cash flow was a record $10.3 billion.

Risk to watch: Retail sentiment turned sharply cautious around the August 4-5 window with Reddit sentiment scores collapsing to 12 (very bearish) alongside heavy activity. Concentration among a handful of frontier-lab customers is the underlying vulnerability if any single roadmap slips.

Marvell Technology (MRVL): The Optical Interconnect Story Marvell Technology (NASDAQ:MRVL) is the year’s clearest breakout, trading at $234.33 after gaining 176.15% year to date and 24.19% in the past month. Optical interconnect and custom silicon are compounding faster than the rest of the AI stack.

Q1 FY27 revenue hit $2.418 billion, up 28% year over year, with data center revenue of $1.83 billion, up 27%. CEO Matt Murphy raised the bar: "Demand for our interconnect products continues to accelerate, and as a result, we have increased our fiscal 2027 revenue growth expectations for this business to more than 70% year over year." Full-year FY27 revenue guidance was raised to approximately $11.5 billion (40% YoY growth), and FY28 guidance moved to approximately $16.5 billion (45% YoY growth). Custom silicon is targeting $10+ billion in revenue by fiscal 2029.

Recent acquisitions (Celestial AI, closed 2/2/2026, and XConn on 2/10/2026) round out a photonic and chiplet portfolio deep enough to compete on end-to-end scale-up solutions. Analyst consensus stands at 88% bullish with 38 buy or strong buy ratings and zero sells, with a target of $257.29.

Risk to watch: Volatility is elevated, with a beta of 2.25. Reddit sentiment on wallstreetbets swung from very bullish (score 85) on August 7 to very bearish (score 12) by August 13-14, hyperscaler in-house silicon risk is real, and a $331.8 million contingent consideration charge highlights ongoing integration complexity.

What to Watch Next The setup into fall is clean. Broadcom’s Q3 print will test the $16 billion AI semiconductor guide. Marvell’s next report will confirm whether the raised FY27/FY28 outlooks are conservative. Arista already told investors what to expect: Q3 revenue of approximately $3.3 billion and diluted EPS of $1.06 to $1.08. If any of the three delivers a beat on top of already-raised guidance, the “quietly dominating” label stops being quiet.

Contact [email protected] for any questions or corrections.

Broadcom (NASDAQ: AVGO) is set to pay its next quarterly dividend on September 30, 2026, maintaining its regular payout of $0.65 per share.

The expected distribution continues Broadcom’s long-standing shareholder return program and comes as the semiconductor giant benefits from strong demand for artificial intelligence infrastructure and networking solutions.

Based on the quarterly dividend of $0.65 per share, an investor holding 100 Broadcom shares will receive $65 from the September payment.

AVGO dividend schedule. Source: Dividend.com The upcoming dividend matches the company’s previous payout, keeping Broadcom’s annualized dividend at $2.60 per share.

At press time, Broadcom stock was trading at $392, up nearly 13% year-to-date.

AVGO stock price chart. Source: Finbold At the current share price, the annualized dividend translates to a yield of about 0.66%. While relatively low compared to traditional income-focused stocks, the yield reflects Broadcom’s position as a growth-oriented technology company.

The company maintains a forward payout ratio of 13.28%, leaving ample room to support future dividend payments while continuing to invest in growth.

Notably, Broadcom has increased its dividend for 16 consecutive years and continues to make quarterly distributions. The stock also has an average dividend recovery period of 8.1 days following payouts.

At the same time, Broadcom’s dividend remains supported by strong business momentum. In its latest quarter, the technology company reported record revenue of $22.2 billion, up 48% year-over-year, while AI semiconductor revenue surged 143% to $10.8 billion. 

Management expects AI semiconductor revenue to reach $16 billion in the current quarter as demand for AI infrastructure continues to accelerate.

The company also generated more than $10 billion in free cash flow during the quarter and ended the period with nearly $20 billion in cash and equivalents. Combined with its low payout ratio, these figures suggest the dividend remains well covered.

Investors will receive another key update before the September payout when Broadcom reports fiscal third-quarter earnings on September 3. 

Wall Street expects revenue of about $29.4 billion and earnings per share of roughly $3.21, providing a fresh test of the company’s AI-driven growth trajectory.

Alongside dividends, Broadcom continues to return capital through its $10 billion share repurchase program and has recently expanded its AI footprint through new processor initiatives and infrastructure partnerships.

Featured image via Shutterstock

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Broadcom (NASDAQ:AVGO | AVGO Price Prediction) trades at $392.99, well below the Wall Street average analyst price target of $527.88, a gap of roughly 34%. The dominant custom silicon partner for hyperscale AI buildouts supplies Google TPUs, Meta MTIA accelerators, and Ethernet networking for AI clusters. Its most recent quarter posted AI semiconductor revenue of $10.8 billion, up 143% year over year, with management guiding the current quarter to $16 billion.

A Sharp Fade From the $494 Peak Broadcom shed 8.13% in a single week, sliding from a 52-week high of $494.18 to $392.99. The three-month move sits at negative 6.43%.

The business remains solid. Q2 fiscal 2026 delivered revenue up 47.9% year over year and non-GAAP EPS of $2.44 against a $2.40 estimate, extending the streak to eight consecutive EPS beats. Investors are questioning whether triple-digit AI growth sustains into 2027 and whether hyperscaler capex remains durable. A broader wobble in AI-capex sentiment drove Reddit sentiment on Broadcom to its lowest reading of the year, a very bearish score of 12, and the stock got caught in that downdraft.

Why Sell-Side Analysts Remain Bullish Coverage has essentially ignored the pullback. Roughly 92% of covering analysts remain bullish, with 7 Strong Buy and 37 Buy ratings against 4 Holds and zero Sells. The mean price target of $527.88 implies 34% upside. The Street-high sits at $675 from BNP Paribas Exane, worth roughly 72% upside from here.

The bull thesis rests on three pillars. First, custom AI ASIC dominance. Google TPU deployments, Meta MTIA acceleration, and expanded custom ASIC partnerships all lean on Broadcom’s design leadership. Q2 AI bookings hit $30 billion against $10.8 billion shipped, and management has guided fiscal 2026 AI revenue to roughly $56 billion, with fiscal 2027 targeted in excess of $100 billion. Second, AI networking. The Tomahawk 6 Ethernet switch platform already accounts for almost 40% of AI revenue at “very rich margins,” per CFO Kirsten Spears. Third, VMware. Infrastructure Software delivered $7.2 billion at a 79% operating margin as customers migrated to VCF 9.1 subscription pricing.

The AI Chip Cohort Has Split Two Ways The AI chip complex has diverged sharply. NVIDIA and Marvell have rallied hard year to date, and AMD has more than doubled. Broadcom stands alone as the major AI silicon name trading at a meaningful discount to consensus.

NVIDIA (NASDAQ:NVDA) sits at $225.16, up 20.87% YTD. The average $302.83 target implies roughly 34% upside, essentially matching Broadcom’s mean, with 10 Strong Buy, 48 Buy, 2 Hold, and 1 Sell rating.

AMD (NASDAQ:AMD) trades at $514.39, up 140.19% YTD after landing OpenAI and Anthropic gigawatt deals. The $612.84 target implies about 19% upside. Ratings run 5 Strong Buy, 36 Buy, 10 Hold, 0 Sell.

Marvell Technology (NASDAQ:MRVL) sits at $222.02, up 161.64% YTD on custom AI silicon momentum. The $257.29 target implies roughly 16% upside. Ratings run 8 Strong Buy, 30 Buy, 5 Hold, 0 Sell.

The largest analyst-implied upside in the group sits with Broadcom on both the mean and the Street-high. NVIDIA is comparable on the mean, while AMD and Marvell have already priced in most of theirs.

Where the Broadcom Numbers Land Broadcom trades at $392.99 against a mean 12-month target of $527.88 across roughly 45 covering sell-side analysts, implying 34% upside. The Street-high $675 target from BNP Paribas Exane implies 72%. Ratings distribute as 7 Strong Buy, 37 Buy, 4 Hold, 0 Sell.

The stock is off 8.13% over the past week and 6.43% over three months, yet still up 13.97% YTD, essentially matching the S&P 500’s 13.85% year-to-date gain. Trailing PE runs 65 and forward PE runs 21. Q2 free cash flow reached $10.3 billion, or 46% of revenue. Management has cited demand visibility running into 2028.

What to Watch Next The bull case rests on hyperscaler AI capex sustaining through 2027 and CEO Hock Tan’s guide to “semiconductor revenue from AI to grow over 200 percent year-over-year to $16.0 billion” in Q3. The path to the $527 mean target runs through the next earnings report validating that guide, the $30 billion AI backlog converting to shipments, and networking holding roughly 40% of AI mix. Deliver on all three, and BNP Paribas Exane’s $675 becomes plausible.

The bear case builds if the AI-capex sustainability narrative develops real teeth. Broadcom carries genuine hyperscaler concentration risk across six named core customers. If even one meaningfully pulls back TPU or MTIA orders, the forward 21x multiple compresses quickly.

Given eight consecutive earnings beats, backlog visibility into 2028, and a 34% mean target upside that widens to 72% at the Street-high, the setup leans cautiously bullish. The bear case is real, but it lives at the macro AI-capex level rather than inside Broadcom itself.

Contact [email protected] for any questions or corrections.

The AI chip trade has been one of the most profitable investment opportunities over the past decade, and the leaders continue to gain market share. Broadcom (AVGO -5.94%) and AMD (AMD +6.50%) have both outpaced the S&P 500 (^GSPC -0.17%) year to date.

These companies specialize in different products. While Broadcom makes most of its money from ASICs, which are custom-made chips for tech giants, AMD specializes in GPUs and CPUs.

Here's what investors should know when comparing both stocks.

Image source: Getty Images.

Both companies have been delivering exceptional results It's not easy to choose between growth stocks like Broadcom and AMD, since both are gaining significant market share while strengthening their fundamentals. AMD delivered 50% year-over-year revenue growth in the second quarter (ended June 27), while Broadcom's sales were up by 48% year over year in its fiscal 2026 second quarter (ended May 3).

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Although AMD has a slight edge, Broadcom's guidance suggests it will win in future quarters. AI semiconductor sales accounted for slightly less than half of Broadcom's revenue and more than doubled year over year. The ASICs leader anticipates its AI semiconductor revenue will more than triple year over year when it reports fiscal 2026 third-quarter results. Broadcom CFO Kirsten Spears told investors to expect 84% year-over-year revenue growth in that quarter.

Similarly, AMD more than doubled its data center revenue year over year, where its AI products are sold. That part of the business accounts for 58% of AMD's revenue, and its growth rate is expected to accelerate in the second half of the year. The midpoint of AMD's guidance implies 41% year-over-year revenue growth next quarter.

CPU demand may surge as the AI build-out reaches its next chapter CPUs are the brains of AI infrastructure, on which GPUs rely to process and retain information. They have always been a key part of AI infrastructure, but the push to agentic AI is making CPUs even more important. It's getting to the point where there may need to be one CPU per GPU, whereas it's been one CPU per eight GPUs for training models.

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Red Hat, an IBM company, stated that the ratio will change to four CPUs per GPU in certain agentic deployments. Hyperscalers investing in agentic AI will need to purchase many CPUs to meet modern ratios. While the 1-to-1 and 4-to-1 ratios don't have to be in favor of CPUs throughout AI data centers, those are the ratios for agentic AI builds.

This news benefits AMD in particular, since it also specializes in CPUs. Broadcom does not offer CPUs at this time, so it will miss this opportunity from a CPU perspective. Grand View Research projects a 46.2% CAGR for the enterprise agentic AI market, which bodes well for AMD.

Broadcom trades at a better valuation Although both companies have compelling growth stories, valuations still matter. The gap between them is considerable. Broadcom trades at a 70 P/E ratio compared to AMD's 120 P/E ratio. Broadcom also trades at a 0.47 PEG ratio, while AMD trades at 1.01.

These metrics imply that Broadcom is the less risky stock at current levels. While AMD has a case for CPU expansion to accelerate revenue growth in the long run, Broadcom is still chugging along. Furthermore, Broadcom's guidance implied a much higher revenue growth rate than AMD's.

Broadcom even has a higher net profit margin than AMD. Its 42% net profit margin was more than twice AMD's 19.9%. Both stocks are compelling, and investors should monitor developments in rising CPU sales if they prefer AMD. However, Broadcom looks more promising at current levels.

Posted by Defense World Staff on Aug 14th, 2026

Aspiriant LLC raised its holdings in Broadcom Inc. (NASDAQ:AVGO – Free Report) by 19.0% during the 2nd quarter, according to its most recent filing with the Securities & Exchange Commission. The fund owned 12,395 shares of the semiconductor manufacturer’s stock after acquiring an additional 1,975 shares during the quarter. Aspiriant LLC’s holdings in Broadcom were worth $4,682,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other hedge funds and other institutional investors have also bought and sold shares of AVGO. ROSS JOHNSON & Associates LLC grew its holdings in shares of Broadcom by 1,320.0% in the fourth quarter. ROSS JOHNSON & Associates LLC now owns 71 shares of the semiconductor manufacturer’s stock worth $25,000 after purchasing an additional 66 shares during the last quarter. SWAN Capital LLC lifted its holdings in Broadcom by 261.9% during the 4th quarter. SWAN Capital LLC now owns 76 shares of the semiconductor manufacturer’s stock valued at $26,000 after buying an additional 55 shares in the last quarter. Networth Advisors LLC lifted its holdings in Broadcom by 546.2% during the 1st quarter. Networth Advisors LLC now owns 84 shares of the semiconductor manufacturer’s stock valued at $26,000 after buying an additional 71 shares in the last quarter. Nvest Wealth Strategies Inc. purchased a new stake in Broadcom in the 4th quarter valued at about $33,000. Finally, Family CFO Inc purchased a new stake in Broadcom in the 4th quarter valued at about $35,000. Hedge funds and other institutional investors own 76.43% of the company’s stock.

Analyst Upgrades and Downgrades A number of equities analysts have recently commented on AVGO shares. Jefferies Financial Group set a $550.00 target price on shares of Broadcom and gave the stock a “buy” rating in a research report on Thursday, June 4th. Dbs Bank upgraded Broadcom to a “moderate buy” rating in a report on Thursday, June 18th. Bank of America increased their price objective on Broadcom from $450.00 to $530.00 and gave the stock a “buy” rating in a research note on Thursday, June 4th. Susquehanna restated a “positive” rating and set a $490.00 price objective (up from $450.00) on shares of Broadcom in a report on Thursday, May 28th. Finally, KeyCorp reaffirmed an “overweight” rating and set a $575.00 target price (up from $500.00) on shares of Broadcom in a research report on Thursday, June 4th. Twenty-eight analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company’s stock. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus target price of $493.24.

View Our Latest Analysis on AVGO

Broadcom News Summary Here are the key news stories impacting Broadcom this week:

Positive Sentiment: Broadcom and NVIDIA’s efforts to raise debt and private capital to fund AI infrastructure underscore the scale of expected demand for computing capacity, potentially supporting Broadcom’s custom-chip and networking businesses. Nvidia and Broadcom Deepen AI Financing Push — But Wolfe Sees Long-Term Risks Positive Sentiment: Recent earnings commentary highlights optics and high-speed networking as increasingly important parts of the AI buildout, areas where Broadcom is positioned to benefit from hyperscale customer spending. Lumentum and Broadcom: Both Have Seen the Light in AI But How Should Investors Play Them? Positive Sentiment: Analysts and investors continue to focus on surging AI-networking demand, Broadcom’s accelerator programs and its ability to benefit regardless of which AI chip architecture ultimately becomes dominant. Is Broadcom in Focus as AI Networking Demand Surges? Positive Sentiment: Institutional buying provided an additional confidence signal: GAMCO Investors added 6,223 shares, while Bowie Capital previously increased its position by 112,599 shares. Cathie Wood also reportedly purchased approximately $16.2 million of AVGO. GAMCO Investors Boosts Broadcom Stake Neutral Sentiment: Broadcom remains a major beneficiary of the broader AI investment theme, with investors increasingly seeking exposure to the ecosystem and supply chain rather than concentrating only in individual chip stocks. The Future of AI Investing: Harbor Debuts 5 New Ecosystem ETFs Negative Sentiment: Valuation remains a key concern. Broadcom has delivered roughly an 8.7-fold five-year return, while current earnings multiples are viewed as expensive and a discounted-cash-flow estimate is near the market value, leaving less room for execution disappointments. Broadcom Stock Trades Near Fair Value but at a Premium on Earnings Negative Sentiment: Wolfe Research sees longer-term risks from intensifying competition in custom AI silicon, while other market observers warn that semiconductor flows and enthusiasm could be approaching a cyclical peak. Semiconductor Flows Stay Sticky Despite Cycle-Peak Warning Insider Buying and Selling In other news, Director Justine Page sold 1,602 shares of the business’s stock in a transaction on Monday, June 29th. The stock was sold at an average price of $373.86, for a total value of $598,923.72. Following the completion of the transaction, the director directly owned 17,426 shares of the company’s stock, valued at approximately $6,514,884.36. The trade was a 8.42% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Director Gayla J. Delly sold 1,890 shares of the company’s stock in a transaction on Wednesday, July 8th. The stock was sold at an average price of $385.38, for a total value of $728,368.20. Following the sale, the director owned 31,326 shares of the company’s stock, valued at $12,072,413.88. This trade represents a 5.69% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 61,644 shares of company stock worth $24,016,214 over the last quarter. Insiders own 1.90% of the company’s stock.

Broadcom Trading Up 0.4% NASDAQ:AVGO opened at $417.82 on Friday. The firm has a 50-day simple moving average of $389.65 and a 200-day simple moving average of $373.16. Broadcom Inc. has a one year low of $281.87 and a one year high of $495.00. The firm has a market cap of $1.99 trillion, a P/E ratio of 69.64, a P/E/G ratio of 0.79 and a beta of 1.45. The company has a debt-to-equity ratio of 0.71, a quick ratio of 2.01 and a current ratio of 2.24.

Broadcom (NASDAQ:AVGO – Get Free Report) last released its quarterly earnings data on Wednesday, June 3rd. The semiconductor manufacturer reported $2.44 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.40 by $0.04. The firm had revenue of $22.19 billion for the quarter, compared to the consensus estimate of $22.13 billion. Broadcom had a net margin of 38.85% and a return on equity of 41.61%. The company’s quarterly revenue was up 47.9% on a year-over-year basis. During the same period last year, the firm earned $1.58 earnings per share. Equities analysts anticipate that Broadcom Inc. will post 10.24 EPS for the current fiscal year.

Broadcom Dividend Announcement The business also recently announced a quarterly dividend, which was paid on Tuesday, June 30th. Shareholders of record on Monday, June 22nd were issued a dividend of $0.65 per share. The ex-dividend date was Monday, June 22nd. This represents a $2.60 dividend on an annualized basis and a yield of 0.6%. Broadcom’s dividend payout ratio is currently 43.33%.

Broadcom Company Profile (Free Report)

Broadcom Inc (NASDAQ: AVGO) is a global technology company that designs, develops and supplies semiconductor and infrastructure software solutions for a broad range of markets. The company’s semiconductor business provides components and systems for wired and wireless communications, enterprise and cloud storage, networking and broadband access, serving original equipment manufacturers, cloud service providers, telecommunications carriers and industrial customers worldwide. Broadcom is headquartered in Irvine, California, and operates globally with research, development and sales organizations across North America, Europe and Asia.

On the semiconductor side, Broadcom’s portfolio includes system-on-chip (SoC) and application-specific integrated circuit (ASIC) solutions, radio-frequency and connectivity components, Ethernet switching and PHY devices, storage adapters and controllers, optical transceivers and other networking silicon.

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The tech sector has been feast or famine at various points this year. It's been strongly affected by the irresistible rise of artificial intelligence (AI). This is the big story in the industry for many investors, and companies at the heart of technology have attracted great interest from the market.

Flush with cash, many have opened their wallets for generous dividend raises of at least 10%. Here's a closer look at three such recent lifts from well-known AI chipmakers -- Nvidia (NVDA +0.54%), Taiwan Semiconductor Manufacturing (TSM +0.31%), and Broadcom (AVGO +0.43%).

Image source: Getty Images.

1. Nvidia Of our trio, Nvidia takes the crown -- and how -- for the highest-percentage dividend raise. It hiked its payout an eye-watering 2,400%!

The big asterisk next to that figure, however, is that Nvidia started from a very low base. With a 10-for-1 stock split in mid-2024, its quarterly distribution was reset at $0.01 per share. It hiked that to $0.25 starting with the June 2026 disbursement.

That's a lot more spend on the shareholder payout, but no one should worry that Nvidia risks financial ruin. (It also added a cool $80 billion to its share repurchase program, adding to the existing $38.5 billion already under authorization.)

These days, its business is hotter than a greenhouse in August. In the fiscal first quarter of 2027, revenue surged 85% higher year over year to nearly $82 billion, while headline net income more than tripled to over $58 billion.

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Simply put, Nvidia is the go-to chipmaker for the AI revolution. For many clients wanting to build out AI compute, the company's silicon isn't simply the best choice, it's the only choice. To my mind, as long as the AI revolution lasts, Nvidia's going to be right at the front of it.

The company's stock has become awfully expensive on both price and valuation. However, it conveys ownership of a business that's currently changing our world forever. I'd say that's worth a high premium, and I'd be a buyer of the stock regardless.

Nvidia's $0.25 per-share payout currently yields nearly 0.5%.

2. Taiwan Semiconductor Taiwan Semiconductor is the chip factory (or foundry, in industry parlance) to the global tech industry. It's far and away the leading third-party semiconductor maker, creating chips for a dizzyingly large list of clients around the globe -- including, importantly, Nvidia.

This is as successful a business as you'd expect. Reflecting this, in May the company declared a nearly 17% dividend raise, from 6 New Taiwan dollars ($0.19) per share to NT$7 ($0.22). This raise hasn't kicked in yet -- it takes effect with the payout slated to occur Oct. 8, for investors of record as of Sept. 16.

The company's recent growth has been almost Nvidia-like. In July alone, it earned revenue of NT$467.6 billion ($14.5 billion), which was nearly 45% higher year over year.

Last month, it published its Q2 results, revealing a 36% increase in net sales to NT$1.27 trillion ($39.5 billion) and a 77% gain in headline net income to NT$706.5 billion ($21.9 billion). Again, as with Nvidia, Taiwan Semi is a top choice for outsourced chipmaking, and with the explosion of AI, it's reaping the rewards.

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The only factor that would make me hesitant to own the company's stock is the possibility that Taiwan's political situation with China could worsen. Yet I feel there's at least some awareness in those nations that any major conflict could be ruinous to both.

Meanwhile, the stock is cheaper on a valuation basis than Nvidia and will boast a higher dividend yield on each of its U.S.-listed American Depositary Shares, at roughly 1% based on the current exchange rate.

3. Broadcom Broadcom distinguishes itself from its two chip industry peers by specializing in customization. It designs silicon with (and for) clients known as application-specific integrated circuits (ASICs), engineered for their particular needs.

Broadcom's customer lineup has plenty of famous names from the tech world. A leading example is its work with Alphabet's Google to develop that company's Tensor Processing Units (TPUs), which are considered among the most cutting-edge AI processors on the market.

Interestingly, in the often-circular AI industry, the TPUs that Google and Broadcom concoct are manufactured by Taiwan Semiconductor.

Broadcom began its current fiscal year (2026) with raising its quarterly dividend by just over 10% to $0.65 per share. It clearly -- and correctly -- anticipated that its recent double-digit increases in key fundamentals would be more than sufficient to fund the enhanced payout.

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The company's net revenue ballooned by 48% year over year to almost $22.19 billion in fiscal Q2, reported in June. It almost doubled headline net income, to over $9.31 billion from slightly under $4.97 billion.

Broadcom has found quite a large and lucrative niche in which to operate. This has, predictably, attracted competitors, most notably the smaller but very ambitious Marvell Technology. Yet analysts put Broadcom's market share at a commanding 55% to 60%, and in the high-stakes game of AI build-outs, players like to go with a company that's trusted by many to do the work. AI is also a rising tide that will lift all the sturdy boats, so I wouldn't worry if Broadcom's share dips a little.

The company most recently paid the $0.65-per-share dividend at the end of June. It yields 0.6%.

Key Takeaways Broadcom says vDefend can cut ATP deployment time from several months to a few weeks.Avi Load Balancer adds native API protection across VMs, Kubernetes services and AI workloads.Nutanix targets VMware migrations, while IBM challenges VCF through Red Hat OpenShift. Broadcom (AVGO - Free Report) has expanded the security capabilities of VMware Cloud Foundation (“VCF”) with new enhancements to VMware vDefend and VMware Avi Load Balancer. The upgrades are designed to strengthen multi-layer cyber defense for private clouds while improving infrastructure efficiency and simplifying security operations through AI-powered automation. The enhancements arrive as enterprises increasingly deploy AI, Kubernetes and traditional virtualized workloads within a common private-cloud environment. It is also likely to boost VCF’s competitive prowess against solutions offered by Nutanix (NTNX - Free Report) and International Business Machines (IBM - Free Report) .

The latest vDefend release strengthens lateral, or east-west, security through a simplified vDefend 1-2-3 deployment framework for Advanced Threat Prevention (“ATP”). The workflow combines ATP with Distributed Firewall (“DFW”) capabilities and workload-level visibility to identify security posture, recommend rules and guide deployment. Broadcom said the approach can reduce deployment time from several months to a few weeks. vDefend also adds fully on-premises malware sandboxing and support for air-gapped environments, allowing organizations with stringent data-sovereignty or security requirements to keep sensitive information and threat-analysis processes within their own infrastructure.

Broadcom is also strengthening application-layer protection through Avi Load Balancer. The platform now provides native API protection across virtual machines, vSphere Kubernetes Services and AI workloads. The combination of Web Application Firewall functionality with API protection, Avi WAAP is intended to give enterprises greater visibility into application traffic while reducing their dependence on multiple stand-alone security products.

Broadcom said a new two-node vDefend Security Services Platform configuration can reduce required physical hardware by as much as 33%. DFW throughput can reach 75 Gbps on servers equipped with 100G NICs and scale to as much as 75 Tbps per VCF instance. Distributed IDPS performance can reach 17 Gbps per server and 17 Tbps per VCF instance, while Avi Load Balancer scale-out throughput has been increased to as much as 12.25 Tbps per controller instance. These figures are based on Broadcom's internal testing.

The update should strengthen Broadcom’s broader effort to make security an integrated component of the VCF private-cloud platform rather than a collection of separate point products. Broadcom identifies the ability of its software portfolio to manage and secure IT environments as an important business requirement and notes that generative AI has increased both vulnerability discovery and the effectiveness and frequency of cyber threats. The improvements should also make VCF more compelling for AI-intensive private clouds.

AVGO Faces Tough CompetitionBroadcom’s VCF is facing stiff competition from Nutanix and IBM.

Nutanix is directly targeting VMware migrations with a lower-friction alternative to VCF. Nutanix believes it is particularly well positioned for mission-critical VMware workloads because customers can migrate applications without modifying them, with much of the migration process automated. The company is broadening its addressable market beyond traditional hyperconverged infrastructure by supporting external storage, reducing one of the barriers to replacing VMware.

IBM is challenging VCF primarily through Red Hat OpenShift, with virtualization becoming an increasingly important component of its hybrid-cloud platform. IBM reported that Red Hat revenue growth accelerated to 11%, while OpenShift ARR reached $2.2 billion in the second quarter of 2026. Red Hat’s OpenShift offers customers a Kubernetes-centric platform spanning containers and virtual machines, which is a different approach compared with VCF. IBM’s broader hybrid-cloud strategy also strengthens its competitive position.

AVGO’s Share Price Performance, Valuation & EstimatesBroadcom shares have appreciated 23.6% year to date, outperforming the broader Zacks Computer and Technology sector’s return of 18.1%.

AVGO Stock’s Price Performance
Image Source: Zacks Investment Research

The AVGO stock is trading at a premium, with a forward 12-month price/sales of 12.83X compared with the broader sector’s 6.58X. Broadcom has a Value Score of D.

AVGO Stock’s Valuation
Image Source: Zacks Investment Research

The Zacks Consensus Estimate for fiscal 2026 earnings is pegged at $11.74 per share, up by a penny over the past 30 days, suggesting 72.14% growth from fiscal 2025’s reported figure.
 

Broadcom currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Alphabet (GOOG -0.88%) (GOOGL -0.96%) posted blowout second-quarter results on July 22. Many of the headlines focused on the company's cloud business, and with good reason. Google Cloud's sales were $24.8 billion, 82% higher than the year-ago period. Sales growth in this business accelerated significantly from the 63% Alphabet recorded in the previous quarter, and the tech leader also ended the period with a $514 billion cloud backlog.

Alphabet could continue to see its cloud business perform well in the next few years, and the company recently began recording a new revenue stream that may become a meaningful growth driver over time, while also affecting other companies such as Broadcom (AVGO +1.71%) and Nvidia (NVDA +2.27%). Here's what investors need to know.

Image source: The Motley Fool.

Multiple growth pathways Alphabet has been relying on its TPUs (Tensor Processing Units) -- custom artificial intelligence (AI) chips designed to handle specific workloads -- in its cloud computing segment for some time. The company still orders chips from external suppliers. But TPUs have become increasingly important for Alphabet. And earlier this year, the company's CEO, Sundar Pichai, said it would start selling TPUs to select outside customers, given the soaring demand for these products.

During Alphabet's second-quarter earnings conference call, management announced that the company had started to realize revenue from these sales. They are likely a minuscule part of the company's total revenue for now, but if demand for these chips remains high enough, Alphabet could be looking at another source of top-line growth. It would also put the company in direct competition with Nvidia. Custom chips have some advantages. They are cheaper than Nvidia's GPUs (Graphics Processing Units) and highly effective at handling the workloads for which they were designed. They can also help companies reduce their exposure to Nvidia, a meaningful perk even beyond the cost savings.

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Now, where does Broadcom fit into all this? It has worked with Alphabet to design TPUs, and the two companies have a long-term deal extending through 2031. So, if Alphabet's TPU sales grow at a good clip, that will be great for Broadcom's business as well. Now, does any of this make Alphabet stock a buy? The company's TPU business may become an important growth driver. Only time will tell. But for now, there is still significant uncertainty there. Meanwhile, there are much better reasons to consider the stock, and the company's high-flying Cloud business is just one of them.

Alphabet also dominates the digital advertising market, thanks to its runaway lead in internet search and solid position in streaming. These are aspects of the business that AI has improved, and considering these industries boast attractive long-term prospects, Alphabet may ride these tailwinds for a while. Even with the significant capex that drove its free cash flow into negative territory in the second quarter, the tech giant's financial results and opportunities more than justify the investments. Alphabet is well-positioned to outperform the broader market in the long run.

Prosper Junior Bakiny has positions in Alphabet and Nvidia. The Motley Fool has positions in and recommends Alphabet, Broadcom, and Nvidia. The Motley Fool has a disclosure policy.

Broadcom stock has jumped to its highest level since June 4 as investors buy the dip in technology companies. AVGO jumped to $418, up by 17% from its lowest point in July and 45% above the year-to-date low. This article explains why the stock will continue rising and possibly move above the year-to-date high of $495.

AVGO stock has several bullish catalysts that will drive it higher in the long term. First, the company will become a major player in the cybersecurity industry as AI-fueled hacks jump. Most recently, companies like OpenAI and Anthropic have confirmed that their AI tools are escaping and hacking companies.

This is just the beginning, with AI models getting more advanced. In China, companies like Alibaba, Moonshot, and DeepSeek have recently launched some of the most advanced AI models in the industry. 

These developments means that companies will need more cybersecurity tools to fight the threats. Broadcom is one of the biggest names in the cybersecurity space, thanks to its Symantec buyout. 

Most importantly, Broadcom has become the go-to partner for the biggest companies in the AI space. It recently extended its relationship with Apple, and is Google’s top partner in its TPU product.

The company has also inked a multibillion deal with OpenAI. Recently, OpenAI unveiled the chip that will be manufactured by the company. Broadcom is also a top partner for companies like Meta Platforms, Amazon, Microsoft, Oracle, and ByteDance. 

These deals explain why its revenue growth is continuing. The most recent results showed that it made over $22 billion in revenue in the second quarter, up by 48% from the same period last year. Its adjusted EBITDA jumped by 69% to $15.2 billion, while the free cash flow rose to $10 billion.

While some metrics fell short of expectations, we believe that Broadcom’s best days are ahead of it. Indeed, the average estimate is that the company’s annual revenue will jump by 65% this year to $106 billion. It will then make $173 billion next year, up by 63% YoY.

If this revenue growth continues, it means that the company will cross the $300 billion figure in the next few years.

Broadcom is a high-margin business, with its operating margin rising to 67%, and this figure may continue to grow.

These metrics helps to justify why Broadcom’s valuation is where it is today. It has a forward price-to-earnings ratio of 33, higher than the technology sector median of 25. 

Still, using the Rule-of-40 approach show that the company is not all that expensive. It has a Rule-of-40 metric of 115%, meaning that its growth and profitability margins are in sync. 

The main risk that may affect Broadcom’s performance is if the AI industry starts slowing down. Recent financial results by big-tech companies shows that they all plan to intensify their investments in the coming years, which is bullish for the company.

AVGO stock chart | Source: TradingView

The daily chart shows that the AVGO stock plunged and formed a big gap on June 3 when its profit metric came short of expectation. It is now attempting to fill the fair value gap after it found strong support along the 200-day Exponential Moving Average (EMA). 

The stock has formed a small inverse head-and-shoulders pattern, while the Relative Strength Index (RSI) has pointed upwards. 

Therefore, the stock will likely continue rising as bulls target the year-to-date high of $495. A move above that level will point to more gains, potentially to $500.

Broadcom logo is seen in this illustration taken June 11, 2026. REUTERS/Dado Ruvic/Illustration Purchase Licensing Rights, opens new tab

CompaniesBRUSSELS, Aug 3 (Reuters) - Broadcom (AVGO.O), opens new tab on Monday lost its bid to suspend a European Union ​antitrust request for U.S. legal documents protected ‌by U.S. legal professional privilege in a case related to VMware, which it acquired in 2023, after an ​EU court sided with EU regulators.

The U.S. ​chipmaker in May asked the Luxembourg-based General ⁠Court for an interim measure against the European ​Commission, which acts as the EU competition enforcer, ​after it was hit with a demand to present documents produced outside the EU.

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It said the request went against ​U.S. attorney-client privilege, which protects confidential communications between ​lawyers and their clients. In the EU, this status covers ‌only ⁠communications between a company and its external lawyers but not in-house lawyers.

The General Court, Europe's second-highest, rejected Broadcom's arguments.

"It is for the Commission to ​decide whether ​a particular ⁠item of information is necessary to enable it to bring to light an ​infringement of the EU competition rules," ​the ⁠judge said.

"If the undertaking under investigation was itself able to decide which documents are, in its view, ⁠relevant ​for the purposes of that ​investigation, that would seriously undermine the Commission's powers of investigation," ​they said.

Reporting by Foo Yun Chee Editing by Tomasz Janowski

Our Standards: The Thomson Reuters Trust Principles., opens new tab

An agenda-setting and market-moving journalist, Foo Yun Chee is a 21-year veteran at Reuters. Her stories on high profile mergers have pushed up the European telecoms index, lifted companies' shares and helped investors decide on their next move. Her knowledge and experience of European antitrust laws and developments helped her break stories on Microsoft, Google, Amazon, Meta and Apple, numerous market-moving mergers and antitrust investigations. She has previously reported on Greek politics and companies, when Greece's entry into the eurozone meant it punched above its weight on the international stage, as well as on Dutch corporate giants and the quirks of Dutch society and culture that never fail to charm readers.

August 2026 lands with Q2 earnings season already confirming what the market has been signaling for months: AI capex is accelerating. Global semiconductor sales hit a record $120.6 billion in May 2026, up 104.1% year over year and marking the 15th consecutive monthly record. Broadcom’s guidance calls for AI semiconductor revenue to grow over 200% year over year to $16.0 billion in the current quarter, and Micron is guiding to a $50.00 billion revenue quarter. The three names below cover the full AI chip stack: memory, custom silicon, and high-speed networking.

Micron Technology (Memory) Micron Technology (NASDAQ:MU | MU Price Prediction) is the memory pick. Q3 FY26 delivered revenue of $41.46 billion, up 345.7% year over year, beating consensus of $35.25 billion by 17.60%, with non-GAAP EPS of $25.11 versus $20.28 expected. It was Micron’s seventh consecutive EPS beat. Q4 guidance calls for revenue of $50.00 billion plus or minus $1.00 billion and non-GAAP EPS of $31.00 plus or minus $1.00, with GAAP gross margin around 86%.

CEO Sanjay Mehrotra summed it up: "Micron’s record fiscal Q3 financial results and even stronger outlook for Q4 reflect the strategic value of memory in the AI era." HBM4 is in high-volume shipment for the lead AI accelerator platform, and Morgan Stanley has flagged Micron as its top semiconductor pick for 2026. Cloud Memory alone generated $13.77 billion in the quarter.

Timing matters. Shares closed at $874.66 on July 30, down 24.21% over the past month despite the record earnings report, giving August buyers a materially better entry than late-June holders. The stock is still up 663.53% over the past year.

Risk: Capex is running hot at $7.83 billion in Q3 alone, and the HBM4 ramp carries lead-customer concentration risk. Reddit sentiment has also softened, with the composite dropping to 48.49 on July 31 from a mid-month peak of 66.88 on July 15. A durable AI capex cycle is required to justify the guidance.

Broadcom (Custom Silicon) Broadcom (NASDAQ:AVGO) is the custom accelerator play. Q2 FY26 posted revenue of $22.19 billion, up 47.9% year over year, with non-GAAP EPS of $2.44 versus $2.40 expected. AI semiconductor revenue was the headline: $10.80 billion, up 143% year over year, above management’s own forecast. Free cash flow ran $10.26 billion, or 46% of revenue.

CEO Hock Tan on the trajectory: "Q2 semiconductor revenue from AI of $10.8 billion grew 143% year-over-year, above our forecast, driven by increasing demand for custom AI accelerators and AI networking." Q3 guide: approximately $29.4 billion in revenue and $16.0 billion in AI semi revenue, up over 200% year over year. Broadcom controls an estimated 70-80% of the custom AI accelerator (ASIC) market across five major hyperscaler customers, including Google and Meta.

Shares finished at $387.84 on July 30, up 29.10% over the trailing year. Capital returns remain aggressive: a $10 billion share repurchase program is authorized through December 31, 2026, alongside a $0.65 quarterly dividend.

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Risk: Customer concentration is real. Semiconductor cyclicality, trade tensions, and the VMware-related debt load are the well-known caveats. Sentiment also cooled sharply into month-end, with the composite dropping 22.78 points in seven days to 43.66 on July 31.

Credo Technology (Networking) Credo Technology (NASDAQ:CRDO) is the networking pick, and the smallest of the three at a $37.50 billion market cap. Q4 FY26 revenue came in at $437.00 million, up 157.0% year over year, with non-GAAP EPS of $1.16 versus $1.03 expected, the fourth consecutive beat. Full-year FY26 revenue tripled to $1.34 billion.

CEO Bill Brennan: "Fiscal 2026 marked another defining year for Credo. For the year, revenue more than tripled to $1.3 billion, and non-GAAP net income increased more than five times to $662 million." Q1 FY27 guidance is $465.0 million to $475.0 million. The company’s Active Electrical Cables, ZeroFlap optics, OmniConnect memory, and 1.6T interconnects sit directly in the hyperscale AI networking sweet spot, and Yahoo Finance flagged Credo on July 23, 2026 as one of four networking semiconductor stocks to watch in August 2026.

Shares closed at $201.08 on July 30, down 26.06% for the month but up 73.33% over the past year. That drawdown is the entry catalyst. The most recent trading session added 13.32%, suggesting the reset may already be finding a bid.

Risk: Management has guided to non-GAAP gross margin of 67.0% to 69.0%, versus 68.3% achieved, and inventories nearly tripled year over year. Customer concentration among hyperscalers is elevated, and this is the smallest and most volatile of the trio.

What to Watch in August Three tests matter over the next four weeks. First, whether hyperscaler capex commentary confirms Broadcom’s 200%-plus AI growth guide. Second, whether Micron shipments track the $50 billion revenue frame. Third, whether Credo’s Q1 FY27 execution justifies the reset. If any two of the three hold, the setup into fall favors continued AI infrastructure leadership across memory, custom silicon, and networking.

Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Broadcom didn't make the cut. Grab the names FREE today.

Contact [email protected] for any questions or corrections.