Broadcom is set to report its fiscal second-quarter results on Wednesday, projecting revenue of around $22 billion, which reflects a 47% year-over-year growth. The Zacks Consensus Estimate for revenue is slightly higher at $22.04 billion, while earnings per share (EPS) are expected to be $2.40, marking a 52% increase compared to the previous year.
In the past year, Broadcom’s custom AI accelerator business grew approximately 140%, serving key clients like Google, Meta, OpenAI, and Anthropic. The company estimates it holds about 70% of the custom AI accelerator market share and anticipates AI-related revenue could surpass $100 billion by 2027, bolstered by a substantial backlog exceeding $73 billion.
Broadcom’s stock has outperformed major indexes this year with nearly 40% growth, as it plays a critical role in the AI infrastructure, offering both custom chips and networking technology essential for data centers. This positioning, along with multi-year contracts, positions Broadcom as a strong player in the ongoing AI build-out.
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