Broadcom: Hard To Ignore The Numbers, Buy Before The Market Catches Up

Summary Broadcom's Q3 FY26 revenue surged 85.5% YoY to $29.6B, with AI semiconductor revenue up 221% and strong operating leverage supporting margins. Robust demand from XPU customers should continue to drive topline growth beyond FY26. Multi-year hyperscaler partnerships and expanding XPU deployments provide substantial revenue visibility, supporting a bullish multi-year topline and earnings outlook. AVGO's forward P/E of 18.7x FY27 earnings offers an attractive entry amid continued AI infrastructure momentum. Broadcom is upgraded to strong buy, driven by exceptional AI semiconductor and networking growth, robust customer demand, and improved valuation. Sundry Photography/iStock Editorial via Getty Images The Thesis Broadcom Inc. ( AVGO ) , a leading AI semiconductor and infrastructure software provider, delivered another quarter with robust growth acceleration, particularly in its AI semiconductor business, which was up over 220% in Q3. While the company continues to This article was written by Research Wise 1.41K Followers Follow As a finance enthusiast with experience in research, I am deeply engaged in studying diverse businesses, especially in the technology, industrial, and conglomerate sectors. I really like companies that have strong foundations and see them doing well in the long run. I enjoy writing about these businesses, telling their stories, strategies, and financial details. I use a mix of looking at their finances and writing to give insights into how well companies might do, helping people understand the market better. This focus on both looking at the numbers and explaining things reflects my dedication to both understanding and explaining the details of the financial world. Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in AVGO over 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.