Sept. 2 earnings are expected to show Broadcom reaching about $29.4 billion in fiscal third-quarter revenue and $3.22 a share, up roughly 84% and 91% from a year earlier.
AI semiconductors are the main driver: Broadcom projects about $16 billion in Q3 AI chip revenue, more than 200% higher year over year, with semiconductor sales overall seen at $20.5 billion.
Bookings support that outlook, with AI semiconductor orders topping $30 billion in fiscal Q2 versus $10.8 billion of shipments, while non-AI chip revenue is forecast at $4.5 billion, up 12%.
Gross margin is still expected to slip to about 74% as lower-margin AI products such as TPUs make up a larger share of sales, even as infrastructure software revenue is seen rising 31% to $8.9 billion.
Broadcom expects AI semiconductor revenue to hit $56 billion in fiscal 2026 and exceed $100 billion in 2027, but its shares are up only 7% this year and trade at 10.75 times forward earnings.