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Broadcom Shares Trade Near 52-Week High: Can the Rally Continue?
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Key Takeaways
Broadcom said Q2 fiscal 2026 AI revenues will hit $10.7B, up 140% year over year.
AVGO's Q1 fiscal 2026 AI revenues surged 106% YoY; XPU jumped 140% and networking rose 60%.
Broadcom is rolling out Tomahawk 6 plus new XPU, optical and PCIe Gen6 products to grow share.
Broadcom (AVGO - Free Report) shares closed at $417.43 on April 30, down 2.8% from the 52-week high of $429.31 the stock hit on April 23. AVGO shares have jumped 20.6% in the year-to-date (YTD) period, outperforming the broader Zacks Computer and Technology sector’s return of 9.8%. Broadcom shares have been benefiting from rising AI revenues driven by strong demand for custom AI accelerators (XPUs) despite lower margins on the chips that are hurting the revenue mix. An expanding portfolio bodes well for AVGO’s prospects, which are expected to push up the shares.
AVGO’s Strong AI Growth Boosts Competitive Prowess
AVGO’s prospect benefits from rising AI revenues. Semiconductor business benefits from strong AI revenues, which surged 106% year over year in the first quarter of fiscal 2026. AI networking revenues grew 60% year over year and represented one-third of AI revenues, while AVGO’s revenues from XPUs jumped 140% year over year.
The company’s strong portfolio is expected to help it steer off stiff competition from NVIDIA (NVDA - Free Report) , Advanced Micro Devices (AMD - Free Report) and Skyworks (SWKS - Free Report) in the AI domain. NVIDIA is benefiting from strong demand for Hopper and Blackwell architectures, while AMD’s prospects are benefiting from strong demand for EPYC and Instinct processors. Skyworks is benefiting from growing demand for its solutions across edge IoT, automotive and infrastructure end markets, as well as the pending acquisition of Qorvo. Shares of AMD, NVIDIA and Skyworks have returned 65.5%, 7% and 10.7%, YTD.
AVGO Stock’s Price Performance
Image Source: Zacks Investment Research
Broadcom’s AI momentum is expected to continue, thanks to a clientele that includes Google, Meta Platforms and Anthropic. The company continues to gain market share in AI networking, driven by the first-to-market Tomahawk 6 switch at 100 terabit per second, as well as Broadcom’s 200G SerDes, which are capturing demand from hyperscalers. Tomahawk 6 doubles the throughput of its predecessor, Tomahawk 5, and is highly optimized for scale-out and scale-up AI networks used for training and inference. Tomahawk 6 provides one of the industry’s most comprehensive sets of AI routing capabilities and interconnect options, built to handle the demand of AI clusters scaling beyond one million custom accelerators (XPUs).
New products like 3.5D XPU, 102.4T Ethernet switches with co-packaged optics, 400G/lane optical DSPs, 200G/lane Ethernet retimers and AECs, and PCIe Gen6 connectivity solutions are expected to drive growth. Broadcom’s latest Symantec CBX (Carbon Black XDR) is a cloud-based platform that combines Symantec’s robust prevention, Adaptive Protection, Data Security, Cloud SWG and Incident Prediction features with Carbon Black’s EDR technology for deep visibility, exceptional threat detection and rapid response across attack surfaces.
Broadcom expects a positive second-quarter fiscal 2026 performance, with AI revenues of $10.7 billion, suggesting a 140% year-over-year upsurge. AI networking is expected to accelerate in the second quarter of fiscal 2026 and grow to 40% of the total AI revenues. Semiconductor revenues are expected to be $14.8 billion, indicating 76% year-over-year growth. Broadcom expects revenues of $22 billion, indicating 47% year-over-year growth for the second quarter of fiscal 2026. For 2027, Broadcom expects AI revenues from chips to surpass $100 billion.
The Zacks Consensus Estimate for second-quarter fiscal 2026 earnings is pegged at $2.40 per share, up by a penny over the past 30 days, indicating 51.9% growth from the figure reported in the year-ago quarter. The consensus mark for second-quarter fiscal 2026 revenues is pegged at $22.04 billion, suggesting 46.9% growth from the figure reported in the year-ago quarter.
The Zacks Consensus Estimate for fiscal 2026 earnings is pegged at $11.45 per share, up 9 cents over the past 30 days, indicating 67.9% growth from the fiscal 2025 reported figure. The consensus mark for fiscal 2026 revenues is pegged at $102.45 billion, suggesting 60.4% growth from fiscal 2025’s reported number.
Here’s Why You Should Buy AVGO Stock Now
Broadcom shares are trading at a premium, as suggested by the Value Score of F.
In terms of the forward 12-month price/sales (P/S), AVGO is trading at 15.5X, higher than the broader sector’s 6.57X. Broadcom is also trading at a premium against peers, NVIDIA, AMD and Skyworks, shares of which are currently trading at 12.67X, 11.41X and 2.76X, respectively.
AVGO Shares Are Trading at a Premium
Image Source: Zacks Investment Research
Broadcom’s expanding AI portfolio is expected to drive top-line growth. This justifies AVGO’s premium valuation.
View the Zacks #1 Rank List
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Broadcom Shares Trade Near 52-Week High: Can the Rally Continue?
Key Takeaways
Broadcom (AVGO - Free Report) shares closed at $417.43 on April 30, down 2.8% from the 52-week high of $429.31 the stock hit on April 23. AVGO shares have jumped 20.6% in the year-to-date (YTD) period, outperforming the broader Zacks Computer and Technology sector’s return of 9.8%. Broadcom shares have been benefiting from rising AI revenues driven by strong demand for custom AI accelerators (XPUs) despite lower margins on the chips that are hurting the revenue mix. An expanding portfolio bodes well for AVGO’s prospects, which are expected to push up the shares.
AVGO’s Strong AI Growth Boosts Competitive Prowess
AVGO’s prospect benefits from rising AI revenues. Semiconductor business benefits from strong AI revenues, which surged 106% year over year in the first quarter of fiscal 2026. AI networking revenues grew 60% year over year and represented one-third of AI revenues, while AVGO’s revenues from XPUs jumped 140% year over year.
The company’s strong portfolio is expected to help it steer off stiff competition from NVIDIA (NVDA - Free Report) , Advanced Micro Devices (AMD - Free Report) and Skyworks (SWKS - Free Report) in the AI domain. NVIDIA is benefiting from strong demand for Hopper and Blackwell architectures, while AMD’s prospects are benefiting from strong demand for EPYC and Instinct processors. Skyworks is benefiting from growing demand for its solutions across edge IoT, automotive and infrastructure end markets, as well as the pending acquisition of Qorvo. Shares of AMD, NVIDIA and Skyworks have returned 65.5%, 7% and 10.7%, YTD.
AVGO Stock’s Price Performance
Image Source: Zacks Investment Research
Broadcom’s AI momentum is expected to continue, thanks to a clientele that includes Google, Meta Platforms and Anthropic. The company continues to gain market share in AI networking, driven by the first-to-market Tomahawk 6 switch at 100 terabit per second, as well as Broadcom’s 200G SerDes, which are capturing demand from hyperscalers. Tomahawk 6 doubles the throughput of its predecessor, Tomahawk 5, and is highly optimized for scale-out and scale-up AI networks used for training and inference. Tomahawk 6 provides one of the industry’s most comprehensive sets of AI routing capabilities and interconnect options, built to handle the demand of AI clusters scaling beyond one million custom accelerators (XPUs).
New products like 3.5D XPU, 102.4T Ethernet switches with co-packaged optics, 400G/lane optical DSPs, 200G/lane Ethernet retimers and AECs, and PCIe Gen6 connectivity solutions are expected to drive growth. Broadcom’s latest Symantec CBX (Carbon Black XDR) is a cloud-based platform that combines Symantec’s robust prevention, Adaptive Protection, Data Security, Cloud SWG and Incident Prediction features with Carbon Black’s EDR technology for deep visibility, exceptional threat detection and rapid response across attack surfaces.
Broadcom expects a positive second-quarter fiscal 2026 performance, with AI revenues of $10.7 billion, suggesting a 140% year-over-year upsurge. AI networking is expected to accelerate in the second quarter of fiscal 2026 and grow to 40% of the total AI revenues. Semiconductor revenues are expected to be $14.8 billion, indicating 76% year-over-year growth. Broadcom expects revenues of $22 billion, indicating 47% year-over-year growth for the second quarter of fiscal 2026. For 2027, Broadcom expects AI revenues from chips to surpass $100 billion.
AVGO’s Earnings Estimate Revision Shows Positive Trend
The Zacks Consensus Estimate for second-quarter fiscal 2026 earnings is pegged at $2.40 per share, up by a penny over the past 30 days, indicating 51.9% growth from the figure reported in the year-ago quarter. The consensus mark for second-quarter fiscal 2026 revenues is pegged at $22.04 billion, suggesting 46.9% growth from the figure reported in the year-ago quarter.
Broadcom Inc. Price and Consensus
Broadcom Inc. price-consensus-chart | Broadcom Inc. Quote
The Zacks Consensus Estimate for fiscal 2026 earnings is pegged at $11.45 per share, up 9 cents over the past 30 days, indicating 67.9% growth from the fiscal 2025 reported figure. The consensus mark for fiscal 2026 revenues is pegged at $102.45 billion, suggesting 60.4% growth from fiscal 2025’s reported number.
Here’s Why You Should Buy AVGO Stock Now
Broadcom shares are trading at a premium, as suggested by the Value Score of F.
In terms of the forward 12-month price/sales (P/S), AVGO is trading at 15.5X, higher than the broader sector’s 6.57X. Broadcom is also trading at a premium against peers, NVIDIA, AMD and Skyworks, shares of which are currently trading at 12.67X, 11.41X and 2.76X, respectively.
AVGO Shares Are Trading at a Premium
Image Source: Zacks Investment Research
Broadcom’s expanding AI portfolio is expected to drive top-line growth. This justifies AVGO’s premium valuation.
Broadcom currently sports a Zacks Rank #1 (Strong Buy), which implies that investors should start accumulating the stock right now. You can see the complete list of today’s Zacks #1 Rank stocks here.