Last updated: May 21, 2026 · ← Back to Stock Fact Sheets
NASDAQ: AVGO
Broadcom Inc.
Custom AI ASICs & networking · Palo Alto, CA · CEO: Hock TanLive price: Yahoo Finance →
Q1 FY26 data · Mar 4, 2026
Q1 FY26 revenue
$19.3BRevenue growth
+29% YoYAI revenue (Q1)
$8.4BAI rev. growth
+106% YoYQ2 revenue guide
$22.0BQ2 AI rev. est.
$10.7BAI backlog
$73BAdj. EBITDA margin
62%Company snapshot
| ASIC market share | ~70% |
| Key ASIC customer | Google (~78% of ASIC rev.) |
| FY26 AI rev. est. | ~$40B (+92% YoY) |
| FY27 AI target | $100B+ |
| Q2 guide growth | +47% YoY |
| Forward P/E | ~27x |
| New buyback | $10B authorized |
Analyst targets
| Bull high | $450+ |
| Consensus avg. | $450–$475 |
| Consensus rating | Strong Buy |
| Adj. EBITDA Q2 guide | 68% |
| Key customers | Google, Meta, Anthropic |
↗ Bull case
- ~70% custom ASIC market share — near-monopoly
- AI rev. $8.4B in Q1, $10.7B guided Q2
- $73B AI backlog + FY27 $100B+ target
- Google TPU relationship = structural demand floor
- VMware adds $20B+ in recurring infrastructure revenue
- ~27x forward P/E — cheaper than NVDA on this metric
↘ Bear case
- Google = ~78% of ASIC revenue — concentration risk
- Hyperscalers building in-house alternatives long-term
- VMware integration costs still weighing on margins
- NVIDIA encroaching on networking with NVLink
- Q2 earnings Jun 3 — next binary event
For informational purposes only. Not investment advice. Financials as of May 21, 2026. Check live quote for current price.
Broadcom Inc. (AVGO) — Company Overview
Broadcom Inc. (NASDAQ: AVGO) is a global semiconductor and infrastructure software company headquartered in Palo Alto, California, led by CEO Hock Tan. Broadcom holds an estimated 70% market share in custom AI accelerators (ASICs), designing purpose-built XPUs for hyperscalers including Google (TPUs), Meta (MTIA), and Anthropic. Its semiconductor solutions segment also includes high-speed networking chips that interconnect AI data center clusters. In 2024 Broadcom acquired VMware for $61 billion, adding a massive enterprise software business that now generates over $20 billion in annualized recurring revenue. Together, ASICs, networking, and VMware make Broadcom one of the most comprehensive AI infrastructure plays in the market.
Q1 FY2026 Earnings & Q2 Guidance
Broadcom reported Q1 FY2026 (quarter ending February 2, 2026) revenue of $19.3 billion, up 29% year-over-year and a quarterly record. AI revenue reached $8.4 billion, up 106% year-over-year, driven by robust demand for custom AI accelerators and AI networking. Adjusted EBITDA margin hit 62%. For Q2 FY2026, CEO Hock Tan guided revenue of approximately $22.0 billion — a 47% year-over-year increase — with AI semiconductor revenue expected to reach $10.7 billion, a near-30% sequential jump. Q2 earnings are scheduled for June 3, 2026. The company announced a new $10 billion share repurchase program alongside Q1 results.
The Custom ASIC Advantage
Broadcom’s custom ASIC business is its most strategically differentiated asset. Unlike NVIDIA’s general-purpose GPUs, Broadcom designs chips that are purpose-optimized for each hyperscaler’s specific AI workload — Google’s TPUs for training and inference, Meta’s MTIA for recommendation models, and Anthropic’s XPUs for Claude. HSBC estimates that Google TPU-related shipments account for approximately 78% of Broadcom’s ASIC revenue, creating meaningful customer concentration but also an extraordinarily deep and sticky relationship. Hock Tan has stated Broadcom has “line of sight” to AI chip revenue exceeding $100 billion by FY2027 — a figure that implies continued hyperscaler capex acceleration and no significant ASIC share loss.
Related Coverage on FactSheets.com
For informational purposes only. Not investment advice. Data as of May 21, 2026.
