--- type: "Topics" locale: "en" url: "https://longbridge.com/en/topics/100000000882235.md" description: "$Broadcom(AVGO.US)’s upcoming Q3 earnings test whether the AI semiconductor boom is diversifying beyond Nvidia's dominance. Wall Street expects $29.4B revenue and $3.24 adjusted EPS, with Broadcom guiding for ~$16B in AI revenue (up >200% YoY).❓ This raises a key question: Does Nvidia need to lose for Broadcom to win in AI infrastructure?Previous Q2 results showed revenue of $22.2B (+48% YoY) and AI revenue of $10.8B (+143% YoY), driven by high EBITDA margins (69%) and free cash flow (46%). Instead of competing head-on with Nvidia's GPUs and CUDA ecosystem, Broadcom partners with hyperscalers (such as Meta on its 2nm MTIA silicon and OpenAI on inference chips) to build custom AI accelerators (ASICs/XPUs) and high-speed Ethernet networking.πŸ‚ The Bull Case: The AI infrastructure market is expanding rather than acting as a zero-sum game. Nvidia maintains dominance in frontier computing, while hyperscalers deploy custom silicon for predictable, cost- and power-efficient workloads. Broadcom benefits from custom chips and cluster networking, enabling rapid growth alongside Nvidia.🐻 The Bear Case: Broadcom faces extreme expectations, valuation pressure, customer concentration risk among a few giant hyperscalers, and Nvidia's entrenched ecosystem advantages. Meeting high guidance may not be enough for Wall Street.πŸ‘€ Looking Ahead: Broadcom sees potential for its AI business to surpass $100B annually by 2027. Success depends on custom silicon shifting from experiments to permanent infrastructure, sustained capex, expanding inference, and execution across tech roadmaps.⭐ πŸ—οΈ Key takeaway: Ultimately, the key metrics I am watching are whether Broadcom hits its $16B target, broadens customer adoption, and proves custom silicon and GPUs can co-exist as dual pillars of AI compute.My Trade: In the meantime, I will just sit on my current position." datetime: "2026-09-02T05:26:32.000Z" locales: - [en](https://longbridge.com/en/topics/100000000882235.md) - [zh-CN](https://longbridge.com/zh-CN/topics/100000000882235.md) - [zh-HK](https://longbridge.com/zh-HK/topics/100000000882235.md) author: "[LazyCat](https://longbridge.com/en/profiles/16872684.md)" generator: "portal-rs" --- # $Broadcom(AVGO.US)’s upcoming Q3 earnings test whe… ### Related Stocks - [META.US](https://longbridge.com/en/quote/META.US.md) - [AVGO.US](https://longbridge.com/en/quote/AVGO.US.md) - [NVDA.US](https://longbridge.com/en/quote/NVDA.US.md) - [OpenAI.NA](https://longbridge.com/en/quote/OpenAI.NA.md) - [NVD.DE](https://longbridge.com/en/quote/NVD.DE.md) ## Comments (3) - **Captain Leo Β· 2026-09-03T10:37:35.000Z**: Laying out the bear case with the same care as the bull one is what makes a write-up like this checkable rather than persuasive. Most people stop at the part they already believe. The print has landed now, so where does that leave the $16B bar you set? - **LazyCat** (2026-09-03T11:34:34.000Z): Result wise, Broadcom outperformed it internal revenue guidance and has also adjusted its outlook upward from an original FY2027 target of 100B to 115B. Hence there is nothing to worry for its future - **honeyandsmoke Β· 2026-09-02T10:40:44.000Z Β· πŸ‘ 1**: one structural difference in that comparison is that broadcom funds a two and a half percent dividend off its software and legacy franchise, so the ai line does not have to carry the whole return. --- > **Disclaimer: This article is for reference only and does not constitute any investment advice.**