To The Moon

Heading into Broadcom's upcoming earnings report, I'm approaching the stock with cautious optimism. The market is clearly expecting another solid quarter, especially given how strongly AI tailwinds have supported AVGO's valuation this year. For me, the key question isn't simply whether Broadcom can "beat" consensus estimates—it's whether the company can demonstrate that its AI momentum is both durable and accelerating into 2025 and FY2026.

Broadcom

AI Momentum: The Core of My Bullish Bias

The biggest reason I'm constructive on Broadcom is the exact pair of catalysts highlighted by Citi and Goldman Sachs:

1. Google opening wider access to the TPU ecosystem, and

Google TPU

2. Hyperscaler AI infrastructure spending re-accelerating.

These aren't short-term boosts—they reflect structural changes in how cloud giants are approaching AI compute. Since Broadcom is deeply involved in Google's $Alphabet(GOOGL)$  custom silicon, networking, and system architecture, I expect this expanded TPU adoption to translate into more stable and scalable orders.

More importantly, the projected triple-digit AI revenue growth for FY2026 tells me Broadcom isn't just benefiting from a one-off investment cycle. Rather, it is securing a long-term position as a foundational supplier in the AI supply chain—something very few semiconductor companies outside of Nvidia $NVIDIA(NVDA)$  can credibly claim.

Hyperscaler

Custom Silicon & Networking: Broadcom's Strategic Moat

One of the things I always emphasize when looking at AVGO is how uniquely positioned they are in custom ASICs. Hyperscalers increasingly want to develop tailored chips—whether for AI inference, training, networking, or system orchestration—and Broadcom has become the go-to partner for these bespoke designs.

On top of that, networking remains Broadcom's crown jewel. High-speed switches, SerDes, and optical interconnects are essentially the backbone of AI data centers. As cluster sizes grow, networking complexity grows even faster, and Broadcom's technology leadership becomes even more valuable.

SerDes

So heading into earnings, I'm expecting AI-related networking strength to compensate for any softness in slower-moving segments like broadband or storage.

What I Am Watching Most Closely in This Earnings Report

For this quarter, the headline numbers matter, but they aren't my primary focus. Instead, I'm paying attention to several specific metrics and signals:

1. Forward Guidance for 2026

A simple "beat" is not enough.

What I want to see is a strong raise, with management reinforcing confidence in continued AI-driven revenue.

If guidance is muted, I'll be assessing whether it's due to genuine demand concerns or just conservative timing assumptions—AI programs often produce lumpier revenue cycles.

Earnings report

2. Commentary on Capacity and Supply Chains

With demand for AI chips exploding, supply chain bottlenecks have become common. I want to hear whether Broadcom is expanding capacity, securing more substrate supply, or signing long-term customer commitments.

AI supply chain

3. Color on Google, Meta, Amazon, and Microsoft Partnerships

$Meta Platforms, Inc.(META)$  $Microsoft(MSFT)$  

Not every hyperscaler reveals details publicly, but Broadcom's comments often hint at which customers are ramping new AI systems. Any reference to:

# TPU volume expansion

# next-gen custom chips

# shifts toward internal accelerators 

would shape my view on how stable Broadcom's AI pipeline truly is.

Potential Risks I'm Still Keeping in Mind

Even though I'm generally bullish, I'm not ignoring the risks:

Hyperscaler Capex Normalization: Spending has been unusually aggressive; any sign of cooling later in 2026 could pressure sentiment.

Customer Concentration: Broadcom relies heavily on a few mega customers.

Macro Weakness in Non-AI Segments: Broadband, wireless, and storage aren't showing strong momentum.

That said, the magnitude of AI-related growth seems strong enough to cushion weakness elsewhere.

Potential risks

My Overall View Going Into Earnings

Overall, I'm leaning bullish $Broadcom(AVGO)$  . Broadcom has delivered consistently, its AI pipeline looks stronger than ever, and the company sits in a near-perfect strategic position—benefiting no matter which hyperscaler ultimately dominates the AI race. As long as management shows solid visibility into the FY2026 AI ramp, I think the market will reward AVGO with continued valuation support.

This is one of the few semiconductor names where I feel confident that the AI cycle isn't just hype or a short-lived boom. For Broadcom, the AI acceleration is real, measurable, and likely to grow more pronounced over the next two years.

About Me

As a retail investor, I focus mainly on the US and Singapore markets, combining a mix of technical trading and long-term investing strategies. I enjoy analyzing charts, spotting patterns, and making calculated moves based on both market sentiment and fundamentals. While I'm not a professional, I treat my portfolio seriously and continue to learn and grow with each trade. If you're also navigating the markets and enjoy discussing stocks, options, or market trends, feel free to follow me. Let's learn and grow together as a community. 

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