Broadcom Seen Facing 'Very High Investor Bar' Ahead of 3Q Print

Dow Jones09-01 02:49

1449 ET - Broadcom is expected to report another solid quarter, but that may not meet a "very high investor bar," Morgan Stanley analysts write in a note. The company, which reports Wednesday, seems confident in hitting its target of 2027 AI revenue exceeding $100 billion, they write. The analysts also don't see Broadcom at risk of losing its long-term share of the tensor processing unit market. The main risk, therefore, is whether the company's numbers match Wall Street's high expectations. "Last quarter was a good reminder that very strong results are not necessarily enough when the bar is high," the analysts write. "The underlying business can continue to perform exceptionally well without necessarily exceeding the most aggressive expectations." Broadcom trades up 0.3% at $369.84.

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