Broadcom Strong AI Revenue Momentum for 2027

Broadcom reported 2Q26 results in line with expectations and reiterated a massive FY27 AI revenue target of over $100bn. Despite a modest near-term guidance shortfall in AI, Goldman Sachs remains Buy-rated with a raised $525 price target.

Key Takeaways

• 1.Maintain Buy rating (on Conviction List) with a price target increase to $525, driven by long-term AI growth potential.
• 2.Broadcom expects FY27 AI semiconductor revenue to exceed $100 billion across 10GW of datacenter deployments.
• 3.The company has secured supply chain components through FY27 and is actively securing FY28 supplies to meet demand.

Table of Contents

• Key stock takeaways
• Quarterly results were in line with the Street
• AI semiconductor revenue outlook
• Custom silicon customers
• Software strength, driven by Agentic AI
• Supply chain assurance and inventory
• Networking momentum
• 3Q guidance is above the Street, but AI revenue is slightly below
• Estimate changes
• Price target and risks
• Disclosure Appendix