Broadcom (AVGO) Earnings Preview: AI Chip Demand Fuels Growth Expectations
Broadcom Inc. (AVGO) prepares to report Q1 FY2026 earnings on March 4, with Wall Street anticipating a 29% revenue surge to $19.21 billion. Analysts project $2.02 EPS, marking a 26% year-over-year increase. The semiconductor giant has outperformed estimates for nine consecutive quarters, setting elevated expectations.
AI-driven demand remains the Core growth driver, with chip revenue forecast to double year-over-year to $8.2 billion. UBS maintains a Buy rating with a $475 price target, while consensus estimates average $452.32. Despite a 60% 12-month rally, AVGO shares face recent pressure—down 8% year-to-date.
Options markets price in an 8.64% implied MOVE around earnings, reflecting heightened volatility expectations. Broadcom's positioning in custom AI chips continues to attract institutional interest as hyperscalers ramp infrastructure investments.
