Broadcom Earnings Preview: AI Networking Growth in Focus Amid Cautious Market Sentiment
Broadcom prepares to report fiscal Q1 earnings after Wednesday's close, with analysts projecting $2.03 EPS and $19.26 billion revenue - a significant jump from $1.60 EPS and $14.92 billion year-over-year. The semiconductor segment leads with expected 51% growth to $12.4 billion, while infrastructure software shows modest 4.3% gains.
AI networking emerges as the dark horse, with HSBC revising estimates upward to $17 billion for FY26 and $30 billion for FY27. Despite maintaining a Buy rating, HSBC trimmed its price target from $535 to $450, reflecting broader market recalibration of AI valuations. Investor caution persists following Nvidia's 5.5% post-earnings drop last week, even after surpassing estimates.