To The Moon

🚀 Broadcom Earnings Preview: Can the AI Engine Deliver Another Blowout Quarter?

With expectations mounting, all attention is turning to Broadcom (AVGO) as it prepares to report earnings. The company has already delivered several consecutive beats — but this quarter carries extra weight because it sits at the intersection of two rapidly accelerating trends in AI infrastructure.

Both Citi and Goldman Sachs are openly bullish, calling for Broadcom to outperform consensus once again. Their conviction stems from two structural tailwinds that are reshaping the semiconductor ecosystem — and placing Broadcom in a stronger competitive position than ever.

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⚡ 1. Google’s TPU Ecosystem Opening — A Transformational Shift

A catalyst that hasn’t been fully priced in by the market is Google’s decision to expand external access to its TPU ecosystem. This move has enormous implications for custom silicon partners like Broadcom.

Why this matters:

• Broader TPU adoption = more custom ASIC demand

• Broadcom is Google’s exclusive silicon partner for multiple TPU generations

• Expanding the TPU ecosystem increases volume, workloads, and AI compute penetration across Google Cloud

• Custom silicon is high-margin, high-visibility revenue — precisely what investors want to see in a volatile macro backdrop

Google expanding TPU access is not just a product update — it is a platform opening, which tends to result in multi-year growth cycles.

Broadcom stands to benefit directly from every incremental TPU deployment.

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⚡ 2. Hyperscaler AI Capex Is Entering a New Acceleration Phase

Across the hyperscaler landscape, 2025–2026 capex trajectories are rising — not flattening.

Cloud leaders including Google, Amazon, Meta, and Microsoft have all signaled double-digit capex growth, with AI infrastructure taking the dominant share.

Broadcom’s exposure spans multiple layers of the AI stack:

🧠 Custom Accelerators

Demand continues to grow as hyperscalers seek alternatives to standardized GPUs.

🔗 High-Performance Networking

AI clusters require ultra-high-speed networking solutions — a domain where Broadcom leads with:

• Jericho3 switches

• Tomahawk family

• Silicon photonics

• Co-packaged optics

☁️ AI Data Center Architecture

Broadcom is increasingly embedded in next-gen AI fabrics, from cluster-level connectivity to compute interconnects.

This positioning gives Broadcom multi-dimensional leverage across the AI boom — not limited to any single product category.

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📈 Triple-Digit AI Revenue Growth Expected in FY2026

Analysts are projecting 100%+ YoY AI revenue growth for Broadcom in FY2026 — an extraordinary acceleration for a company already operating at massive scale.

This expected surge comes from:

• Stronger-than-expected hyperscaler orders

• New ASIC design wins

• Expanding networking leadership in AI data centers

• Higher attach rates across AI server architectures

• Growing share of wallet from large cloud partners

If these projections materialize, Broadcom could shift from being seen as a diversified semi titan to a top-tier AI infrastructure pure-play.

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🔍 3. What Should Investors Watch Closely This Earnings?

a. AI Revenue Mix

The market will be laser-focused on AI’s percentage of total revenue.

A rising mix = stronger structural growth = higher valuation support.

b. Commentary on FY2026 Pipeline

Hyperscaler visibility into 2026 orders is critical.

Stronger guidance could spark another wave of rerating.

c. Traditional Segments

Broadband, enterprise storage, and other non-AI businesses may remain soft.

The key question:

Will AI revenue growth more than offset cyclical weakness elsewhere?

d. Margins and Cash Flow

AI-heavy revenue typically improves margin resilience.

Watch for comments on cost discipline and supply chain flow.

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🏦 4. The Investment Thesis Going Into Earnings

🔥 The Bull Case (Strong Probability)

• Broadcom delivers another beat

• AI revenue shows robust acceleration

• Management provides strong FY2026 visibility

• Custom silicon pipeline expands

• Networking products exceed expectations

• Market rewards the earnings beat with further upside

🧊 The Bear Case (Less Likely but Possible)

• AI revenue growth temporarily pauses

• Legacy segments drag overall revenue

• Market perceives AI guidance as conservative

• Valuation concerns limit near-term upside

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🎯 Core Insight: Broadcom Is Becoming the “Quiet Giant” of AI Infrastructure

While the market tends to focus on GPU leaders like NVIDIA, Broadcom is quietly positioning itself as an indispensable pillar of the AI compute stack.

Its role in networking, custom silicon, and hyperscaler partnerships gives it:

✔ High visibility

✔ High margins

✔ Wide technical moats

✔ Multi-year growth catalysts

✔ And a pipeline that strengthens each quarter

If Broadcom confirms the triple-digit AI revenue trajectory for FY2026, this could become one of the strongest AI infrastructure stories heading into 2026.

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💬 Your View: Can Broadcom Beat Again?

Share your insights — this could be one of the most important AI earnings reports of the quarter. 🚀📊🔥

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