To The Moon

Earnings Calendar (31Aug2026)

There are a few interesting earnings releases in the coming week that include Dell, NIO, Palo Alto, Asana and Broadcom.

Let us look at Broadcom.

Broadcom: Market View and Valuation

Technical analysis currently indicates a “strong sell”, while analyst sentiment points to a “strong buy”. The price target of $555.97 implies a potential upside of 42.6%, and the stock has risen 24.01% over the past year.

However, valuation appears stretched. With a P/E ratio of 61.2 and EPS of $6.19, the stock looks expensive on an earnings basis.

Financial Performance: 2021–2025

Broadcom’s financial performance strengthened significantly between 2021 and 2025, with revenue, operating income, and net income all showing strong growth.

• Total revenue rose from $27.4 billion to $63.8 billion.

• Operating income increased from $8.6 billion to $26.3 billion.

• Net income grew from $6.7 billion to $23.1 billion.

Profitability also remains strong. Gross margin on a trailing twelve-month basis stands at 76.28%, while operating margin and net profit margin are 44.17% and 38.85%, respectively.

Balance Sheet and Cash Flow

Broadcom’s balance sheet expanded over the five-year period. Total assets increased from $75.5 billion to $171.09 billion, while total liabilities rose from $50.5 billion to $89.8 billion. Total equity also grew from $24.9 billion to $81.2 billion.

Debt levels remain an area to monitor. Long-term debt to equity stands at 71.45% on a most recent quarter basis, while total debt to equity is 74.02%.

Cash generation has improved meaningfully. Cash from operations increased from $13.7 billion to $27.5 billion, while levered free cash flow rose from $11.8 billion to $25.0 billion over the same period. It is also encouraging that cash from financing has been falling, suggesting that the company may be reducing debt.

Q2/2026 News surrounding Broadcom

Broadcom reported record fiscal second-quarter 2026 revenue of $22.19 billion, up 48% year over year. Growth was driven almost entirely by artificial intelligence demand. Custom accelerators and high-speed networking chips supplied hyperscale customers, lifting AI semiconductor revenue to $10.8 billion, a 143 percent increase.Results demonstrated scale and execution. Management guided third-quarter revenue to approximately $29.4 billion and AI chip sales to $16 billion. It also restated full-year 2026 AI semiconductor revenue of $56 billion and more than $100 billion in fiscal 2027.Those longer-term figures were left unchanged. Investors had hoped for an upward revision. Combined with AI guidance that fell short of the most optimistic estimates, the outlook disappointed. Shares declined sharply in after-hours trading.The episode underscored a familiar market dynamic: record growth can still register as insufficient when expectations are already priced for acceleration. Broadcom delivered exceptional operating results; the stock reaction reflected the gap between performance and an even higher implied trajectory. - Grok & Gemini

For the coming earnings, the forecast EPS and revenue are $3.21 and $29.25B, respectively. Given the above, I prefer to monitor the stock for now.

@TigerStars

$Vanguard S&P 500 ETF(VOO)$

$Cboe Volatility Index(VIX)$

$Broadcom(AVGO)$