--- title: "Broadcom Earnings Outlook – Mizuho 5-Star Analyst Flags 4 Key Questions Ahead of Earnings" type: "News" locale: "en" url: "https://longbridge.com/en/news/296620487.md" description: "Mizuho analyst Vijay Rakesh reiterates a Buy rating for Broadcom (AVGO) with a $530 price target ahead of Q3 FY26 earnings. He highlights four key investor questions: whether AI revenue will exceed expectations, the strength of AI growth through 2028 driven by major tech clients, Google's potential to diversify TPU suppliers, and the impact of packaging technology, margins, and buybacks on profitability." datetime: "2026-08-21T12:39:00.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/296620487.md) - [en](https://longbridge.com/en/news/296620487.md) - [zh-HK](https://longbridge.com/zh-HK/news/296620487.md) generator: "portal-rs" --- # Broadcom Earnings Outlook – Mizuho 5-Star Analyst Flags 4 Key Questions Ahead of Earnings Custom chip supplier Broadcom (AVGO) is heading into its Q3 FY26 earnings report with investors focused on the strength of its AI business and the sustainability of its growth. Mizuho Securities analyst Vijay Rakesh reiterated his Buy rating and $530 price target, implying 45.6% upside potential. ### Summer Sale - Claim 70% Off TipRanks - Unlock powerful investing tools with TipRanks Premium to make smarter, more confident investment decisions - Subscribe to TipRanks Smart Investor Newsletter, and discover new investing opportunities with data-backed stock picks Rakesh believes Broadcom has the technology needed to support Google's (GOOGL) large-scale TPU deployments across multiple chip generations, thanks to its strength in custom ASICs, SerDes, and advanced packaging. However, he noted that Google could seek lower-cost suppliers and diversify its TPU partnerships, creating a potential risk for Broadcom. Ahead of the results, here are four key questions the analyst expects investors to focus on. ## **1\. Can AI Revenue Beat Expectations?** Broadcom currently expects more than $100 billion in AI revenue in fiscal 2027. Wall Street expects about $121 billion, while Rakesh is forecasting $141 billion. Investors will want to know whether Broadcom can maintain its strong momentum as demand for custom AI chips grows. Investors will want to know whether Broadcom can maintain its strong momentum as demand for custom AI chips grows. ## **2\. How Strong Will AI Growth Be Through 2028?** Rakesh expects Broadcom's AI business to benefit from several large deployments involving Google, Anthropic, Meta (META), OpenAI, and Apollo/Blackstone (BX). Investors are looking for more clarity on the planned 20GW AI build-out, including 5GW in 2027 and 15GW in 2028. These projects could create a significant pipeline of custom AI chip demand, potentially providing upside to Broadcom's 2028 and 2029 results. ## **3\. How Much Can Google's TPU Business Grow?** Google remains particularly important to Broadcom because of its role in the company's AI chip business. However, investors are concerned that Google could diversify its supplier base and work with companies such as MediaTek, Alchip, GUC, AMD (AMD), and Marvell (MRVL). MediaTek could take some of Broadcom's share of Google's TPU business in 2028 as it ramps up its own TPU chips. Rakesh will be watching whether Broadcom can maintain its position as Google expands TPU deployments and competing programs ramp up through 2027 and 2028. Any signs that Broadcom is retaining or increasing its share of Google's TPU business could strengthen the AI growth outlook. ## **4\. What About Packaging, Margins and Buybacks?** First, Rakesh wants to see whether Broadcom's advanced packaging technologies, including CoPoS and EMIBT, can support the ramp-up of AI ASICs through 2028-29. He also expects investors to focus on long-term profit margins, particularly as Broadcom faces more competition in AI ASICs and its business mix shifts between semiconductors and software. Finally, Rakesh sees potential for large share buybacks, as he expects Broadcom to generate more than $100 billion in free cash flow in fiscal 2027 and beyond. Rakesh is a five-star analyst on TipRanks, ranking #5 out of the 12,488 analysts tracked. He has a 69% success rate and an average return per rating of 72.40%. ## **Is AVGO a Good Buy Right Now?** On TipRanks, AVGO has a Strong Buy consensus rating based on 24 Buys and three Hold ratings. The average Broadcom price target of $509.96 implies 40.1% upside potential from current levels. 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