Broadcom to Report Earnings on Sept. 2 Amid AI Revenue Growth and Competition Concerns
Broadcom (AVGO) is set to report earnings for its fiscal third quarter after the market close on September 2, with management forecasting a more than 200% year-over-year increase in AI semiconductor revenue to $16 billion. The chipmaker has been underperforming compared to the S&P 500 this year and faces concerns over competition from Marvell Technology following an agreement with Alphabet that could impact Broadcom's custom TPU business. Despite these challenges, Broadcom delivered strong results in its fiscal second quarter, reporting $22.18 billion in revenue (up 48% YoY), net income of $9.31 billion (up 88%), and earnings per share of $1.91 (up 85%). CEO Hock Tan attributed the growth to strong demand for AI accelerators and networking solutions. Analysts suggest that Alphabet's expansion into chipmaking partnerships, including with Marvell, should be viewed as strategic diversification rather than a direct threat to Broadcom.
Topics: AI chips Broadcom earnings semiconductors