Broadcom is set to report its fiscal third-quarter FY26 results on September 2, and Wall Street analysts are expressing considerable optimism about the semiconductor giant's performance ahead of the release. The report arrives amid an intense race to build out AI computing infrastructure, where custom accelerator demand has become the central growth engine for major chip designers.

Shares of AVGO currently trade at $368.62, up a modest 7% since the beginning of the year. The stock remains in the lower range relative to other AI semiconductor names. The year has included a challenging stretch in which the stock tumbled 13% after its second-quarter FY26 results — figures that were objectively solid but fell short of the lofty AI-driven expectations investors had developed. That dynamic reflects a broader pattern across AI hardware stocks, where valuations have been built on expectations of continued hypergrowth, leaving shares sensitive even to results that would otherwise be considered strong.

Analyst Rating Maintained

Ahead of the earnings announcement, Benchmark's Cody Acree has reaffirmed his Buy recommendation on AVGO while maintaining his $545 price objective. According to Acree, the recent stock decline has created an attractive entry opportunity for new investors to establish positions.

Acree holds the No. 63 position among more than 12,499 analysts tracked by TipRanks, with a 68% accuracy rate and an average return of 33.40% per recommendation over a one-year timeframe.

Earnings Expectations and Projections

The Wall Street consensus calls for fiscal Q3 FY26 earnings per share of $3.22, a substantial 90.5% increase compared to the prior-year quarter. Revenue projections stand at $29.24 billion, representing an 83.3% year-over-year surge. Those growth rates underscore how heavily Broadcom's results are now driven by AI-related silicon, which has expanded far faster than the company's more mature infrastructure software and networking businesses.

Acree's own estimates run slightly above consensus. He forecasts Q3 revenue of $29.403 billion alongside EPS of $3.24.

Looking toward Q4 FY26 guidance, Acree anticipates Broadcom will guide for revenue of $34.902 billion with EPS of $3.89. His analysis suggests investors will place greater emphasis on the forward-looking Q4 guidance than on any minor variations in the Q3 actual results.

On AI chip shipments, Acree highlighted management's expectations for approximately 10 gigawatts of FY27 deliveries, with the 2026-27 timeframe already locked in and strategic planning now extending into the 2028-29 period.

While Google continues to be the dominant volume customer for Broadcom's custom XPU solutions, Acree identified Anthropic, OpenAI, and Meta Platforms as emerging demand drivers. Two additional customers are reportedly joining the pipeline. The widening customer base is a notable shift for a business that has historically leaned on a small number of large hyperscale buyers, and it diversifies the sources of Broadcom's AI revenue over time.

Competitive Landscape

Acree acknowledged competitive headwinds on the horizon. MediaTek is positioned to serve as a secondary supplier in select programs, and Marvell has introduced new inference and TPU-related offerings that could challenge AVGO's market position. The moves fit a wider industry trend in which hyperscalers seek to qualify multiple suppliers for custom silicon, both to secure capacity and to gain negotiating leverage.

Despite these developments, Acree does not consider either competitor a meaningful short-term risk to Broadcom's core high-performance TPU partnerships. He pointed to Broadcom's April partnership extension with Google, which secures multiple future TPU generations and AI networking capabilities through 2031, as a critical foundation for sustained growth.

Google's strategy to broaden its chip supplier base was characterized as a "share-of-growth" concern rather than an immediate threat to AVGO's established TPU revenue streams.

ARK Invest Adds to Position

From an institutional investment perspective, Cathie Wood's ARK Invest acquired 55,131 shares of AVGO on August 28, an investment of approximately $20.48 million. The purchase came on the heels of a comparable transaction earlier that same week, and occurred as ARK was divesting its AMD holdings. The rotation between two AI chip names offers a window into how actively managed funds are repositioning within the AI semiconductor trade as earnings season approaches.

Wall Street's Strong Buy consensus rating on AVGO corresponds with an average price target of $512.36, implying approximately 39% upside from current trading levels.

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