Broadcom: A $230 Billion AI Juggernaut In The Making

Dhierin Bechai Investing Group Leader Follow Summary Broadcom delivered record Q3 FY26 revenue, operating income, and free cash flow, driven by surging AI semiconductor sales. AI revenue is projected to reach $58B in FY26, doubling to $115B in FY27, and again to $230B in FY28, underpinning robust multi-year growth. Despite gross margin pressure from custom silicon, AVGO's operating leverage and recurring software revenue support record profitability and cash generation. I maintain a strong buy rating with a $445.72 base case price target, citing rapid growth, high margins, deleveraging, and expanding shareholder returns, while noting execution risks. Looking for a helping hand in the market? Members of The Aerospace Forum get exclusive ideas and guidance to navigate any climate. Learn More » MF3d/iStock via Getty Images Shares of Broadcom ( AVGO ) sold off after the company reported third-quarter fiscal 2026 results, even though revenue, operating income, and free cash flow reached records. We note that AI stocks have come under pressure, and Broadcom is no exception This article was written by Dhierin Bechai 24.69K Followers Follow Dhierin-Perkash Bechai is an aerospace, defense and airline analyst. Dhierin runs the investing group The Aerospace Forum, whose goal is to discover investment opportunities in the aerospace, defense and airline industry. With a background in aerospace engineering, he provides analysis of a complex industry with significant growth prospects, and offers context to developments as they occur, describing how they might affect investment theses. His investing ideas are driven by data informed analysis. The investing group also provides direct access to data analytics monitors. Learn more. 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.