Broadcom: Don't Let The Market Confuse You

The Techie 5.4K Followers Follow Summary Broadcom Inc. delivered a near-flawless Q3 print, with revenue up 86% and AI semiconductor revenue surging 221% year over year. Despite record free cash flow and robust operating margins, AVGO sold off on a 4Q revenue guide slightly below consensus and cautious software segment growth. Management guided FY2026 AI revenue to $58B and expects FY2027 and FY2028 AI revenues to double each year, with supply secured and assumptions conservative. I maintain a Buy on AVGO stock as valuation concerns have eased, operating leverage remains strong, and upside exists if data center demand materializes as forecast. Abstract Aerial Art/DigitalVision via Getty Images Broadcom Inc. ( AVGO ) reported Q3 '26 after the market close on Wednesday, and on the numbers, this was almost a flawless print. Revenue of $29.59 billion was up 86% year over year, above the $29.36 This article was written by The Techie 5.4K Followers Follow I’m a retired Wall Street PM specializing in TMT; since kickstarting my career, I’ve spent over two decades in the market navigating the technology landscape, focusing on risk mitigation through the dot com bubble, credit default of ‘08, and, more recently, with the AI boom. In one word, what I’d like my service to revolve around is momentum. Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.