AVGO
AI demand is doing the heavy lifting
Broadcom came out swinging with first-quarter revenue of $19.31 billion, a notch above estimates, and adjusted EPS of $2.05, also ahead of Wall Street. That’s not exactly “surprise, here’s a moonshot,” but it is the kind of beat that keeps the bulls fed.
More important: management didn’t just say things were fine — it said the next stretch could be even better. The company guided for about $22 billion in fiscal second-quarter revenue, above consensus, and said AI chip revenue could top $100 billion in 2027. That’s a giant number, even by the standards of the current AI gold rush.
The buyback cherry on top
Broadcom also approved a new $10 billion share repurchase program, which is corporate-speak for, “We like our own stock enough to keep buying it.” For investors, that matters because it can help support the share price while the company keeps leaning into its custom silicon and AI networking business.
Why this matters for your portfolio
The real story here isn’t just a clean earnings beat. It’s that Broadcom keeps building itself into one of the plumbing companies of AI — the pipes, switches, custom chips, and all the boring stuff that becomes very exciting when data centers are on fire with demand.
And yes, the stock is acting like it knows it. With analysts lifting price targets after the print and management sounding increasingly confident about long-term AI demand, Broadcom is looking less like a cyclical chip name and more like a toll booth on the AI highway.
Big picture: if AI spending stays hot, Broadcom doesn’t just participate — it gets a front-row seat and a cut of the ticket sales.