For its fiscal FY23, analysts expect Broadcom$博通(AVGO)$ to report revenue of $35.54 billion, up 7% YoY. EPS is expected to be $41.28, up close to 10% YoY. These show a significant deceleration from the last couple of years but reflect the difficult operating environment. I believe these expectations look fair, but it would also be safe to assume Broadcom to slightly outperform these expectations. In addition, the growth rates for the years until 2026 look somewhat conservative by analysts with revenue growth rates of mid-single digits and EPS growth of between 6% to 9% which, considering the tailwinds I see for this business, seem rather disappointing.

I believe EPS and revenue growth should be much closer to 10% in the period until 2026. This is primarily driven by strong continued growth expectations from the networking segment which should be able to keep delivering over 20% growth and closer to 30% in 2024, while also increasing as a share of total revenue. I also expect enterprise software sales to pick up again by the second half of 2023 and into 2024. Broadcom continues to be well positioned towards several strong growth trends and these should cause strong demand as well.