Broadcom Faces $29.241 Billion Q3 Revenue Bar as AI Chip Shift Erodes Margins

3 articles · Updated · Yahoo Finance · Sep 1

$29.241 billion in revenue and $3.215 in adjusted earnings is Wall Street's Q3 target for Broadcom, slightly below the company's own $29.4 billion outlook ahead of results due after Wednesday's close.
AI chips are driving the gap: they are expected to contribute $16 billion, or 54% of sales, but carry lower margins than Broadcom's software business even as revenue growth stays strong.
Broadcom has said it can still hold profit at 67 cents per sales dollar, unchanged from last quarter, despite an 84% revenue jump—suggesting scale is rising faster than profitability.
Investor positioning has turned cautious, with top-performing investors cutting exposure 2.37% over 30 days and 3.06% in the last week; Broadcom's Chaikin Money Flow reading of -0.225 is the weakest among 14 major chip names.
The setup leaves Broadcom stock vulnerable even if it beats estimates again: shares are 23% below their June 2 record, and the stock has often fallen after earnings despite topping forecasts.