Broadcom (NASDAQ: AVGO) reports its fiscal second-quarter results today, Wednesday June 3, 2026, after the market close, with a conference call scheduled for 5:00 PM ET. The stock is going into the print at all-time highs: shares closed at $481.57 on June 1 after rallying 4.70% on a Morgan Stanley note that flagged options markets pricing a major post-earnings move, and were quoted around $493 in pre-market trading on the day of the release. At the current quote AVGO is the second most valuable US semiconductor company, with a market capitalization of roughly $2.32 trillion.
For a company that did not exist as a public entity under this name a decade ago, the setup is striking. The print will land into a tape that has bid every AI-infrastructure name to record highs — Nvidia, Marvell, Micron, ASML, and TSMC all sit at or near all-time highs — and AVGO is now the connective tissue between the hyperscalers and the chips that train the largest frontier models.
The setup: a stock priced for AI re-acceleration
Broadcom’s last quarterly print (Q1 fiscal 2026) was a textbook AI beat. The company reported $2.05 in non-GAAP diluted EPS against a $2.03 consensus, on revenue of $19.31 billion vs the $19.10 billion analyst estimate, with management guiding $22.0 billion in revenue for Q2 FY26 — the number the market is judging tonight. That guide implied roughly +14% sequential growth, almost entirely a function of accelerating AI semiconductor revenue.
The shape of the company has shifted materially since the VMware acquisition closed in November 2023. In fiscal 2025, Broadcom posted $63.89 billion of revenue and $23.13 billion of net income, split roughly 58% semiconductors / 42% infrastructure software. Inside the semiconductor segment, AI revenue — custom XPUs plus networking silicon (Tomahawk, Jericho, Thor) — has gone from a quarterly footnote to the engine of the franchise. Management has previously guided FY26 AI revenue to a range that, if hit, would make AI alone larger than several of AVGO’s other reporting lines combined.
| Metric | Q1 FY26 actual | Q2 FY26 company guide | FY25 full year |
|---|---|---|---|
| Total revenue | $19.31B | ~$22.0B | $63.89B |
| Non-GAAP diluted EPS | $2.05 | — | — |
| Net income | — | — | $23.13B |
| Semiconductors % of revenue | — | — | ~58% |
| Infra software % of revenue | — | — | ~42% |
The only number that matters: AI semiconductor revenue
Inside the semiconductor segment, two product families do most of the AI work:
- Custom XPUs. Broadcom designs application-specific accelerators for hyperscalers that prefer not to buy merchant GPUs exclusively from Nvidia. The two anchor customers historically disclosed are Google (the TPU program, where Broadcom turns Google’s architecture into manufacturable silicon) and Meta (the MTIA training and inference accelerator family). A third hyperscaler — widely reported to be ByteDance — and a partnership with OpenAI on custom inference silicon round out the disclosed XPU pipeline.
- AI networking. Broadcom’s Tomahawk and Jericho switch silicon, together with its PAM4 SerDes and optical DSP families, are the de-facto standard for non-Nvidia AI fabrics. As clusters scale into hundreds of thousands of accelerators, switch and optical content per cluster compounds.
Sell-side and buy-side notes ahead of tonight’s print are converging on one question: does the AI semiconductor line accelerate sequentially again, and if so, by how much? A modest miss on total revenue can be forgiven if the AI line beats and management raises the FY26 AI target. A clean total-revenue beat that came from non-AI strength would be a surprise, and probably not the good kind, given how the stock is positioned.
Where the share price is going in
The pre-market quote already trades through the average 12-month analyst target ($485.72), and through Benzinga’s reported consensus target of $472.58. In other words, the sell-side is already chasing the stock higher into the print. That is a familiar dynamic in AI-infrastructure names this cycle, but it raises the bar on tonight’s release: the move has been bought, and even a strong number may need to be paired with a real FY26 AI raise to keep the bid intact.
On valuation, AVGO trades at a trailing P/E near 94x and a dividend yield of about 0.54%. Forward multiples are considerably lower because consensus FY26 EPS is expected to step up sharply on the AI mix, but the trailing number underlines the simple point: a lot of growth is in the price.
What can go wrong
The bear case has three legs. First, customer concentration: the XPU franchise leans heavily on a small number of hyperscalers. Any individual customer pulling in-house, pausing a program, or shifting to a competitor would have outsized P&L impact. Second, competitive intensity: Marvell is now publicly competing at the top of the AI switch market with a 102.4 Tbps part announced earlier this week, and Nvidia continues to vertically integrate the fabric (NVLink, Spectrum-X, BlueField). Third, software-segment growth: the VMware-anchored infrastructure software business is the steadier half of Broadcom, but it is also where price-rise tailwinds eventually annualize. If software growth decelerates faster than AI accelerates, the company-level optics get harder.
None of these are tonight’s problem. Tonight is about whether the AI line accelerates and whether management lifts the FY26 AI target. Everything else — multiple, options-implied move, the chase by sell-side targets — flows from that one number.
What to watch on the call
- FY26 AI revenue commentary. Any restated or upgraded range will move the stock more than the headline beat itself.
- Q3 revenue guide. The sequential step from $22.0B is the cleanest read on whether AI demand is still in the early innings of this cycle.
- VMware / software segment growth. Watch the YoY rate ex-AI as the integration laps.
- New XPU programs. Any disclosure (or strong hint) of a fourth or fifth hyperscaler customer is the kind of detail that re-rates the AI franchise.
- Capital return. Broadcom has historically paid a meaningful dividend and remains active on buybacks; any change to either is a tell on management’s confidence.
Sources
- Broadcom Investor Relations — Q2 FY26 earnings call (June 3, 2026, 5:00 PM ET)
- MarketBeat — Broadcom earnings history (Q1 FY26 actuals: $2.05 EPS, $19.31B revenue; Q2 FY26 company guide $22.0B)
- Yahoo Finance — AVGO quote, market cap, 52-week range, 1-year target
- Benzinga — AVGO pre-market quote and consensus price target ($472.58)
- Broadcom company overview — FY25 revenue ($63.89B), segment split, XPU customers
Disclosure: This article was produced with AI assistance and reviewed before publication. It is for informational purposes only and is not investment advice.