Broadcom Lifts AI Revenue Forecast to $58B, Projects $230B by 2028
AVGO sits 22% above its 52-week low of $289.96.
Summary
Broadcom raised its full-year AI revenue forecast to $58 billion from $56 billion and introduced new projections of $115 billion for fiscal 2027 and $230 billion for fiscal 2028. The company reported Q3 revenue of $29.59 billion, up 86% year-over-year, with AI chip revenue surging 221% to $16.7 billion. Q4 guidance of $34.8 billion came in slightly below some analyst expectations, contributing to the stock trading 29% below its 52-week high. The updated AI revenue targets signal management's confidence in sustained demand from major customers like Google, Meta, OpenAI, and Anthropic. Supply constraints, not demand, are the near-term limiting factor. The stock's modest 6% year-to-date gain contrasts with earnings up 43% over the same period, leaving room for re-rating if Q4 results exceed the conservative guide.
At the time of this announcement, AVGO was trading at $353.70 on NASDAQ in the Technology sector, with a market capitalization of approximately $1.7T. The 52-week trading range was $289.96 to $495.00. This news item was assessed with positive market sentiment and an importance score of 7 out of 10. Source: Crypto Briefing.