Is Broadcom (AVGO) Stock a Buy Ahead of Earnings on Wednesday

TLDR

• Broadcom (AVGO) reports Q1 FY2026 earnings on March 4, 2026
• Wall Street expects revenue of $19.21 billion, up 29% year-over-year
• EPS forecast is $2.02, up 26% year-over-year; Broadcom has beaten estimates in each of the last nine quarters
• The AI chip business is expected to reach $8.2 billion this quarter, doubling year-over-year
• UBS has a Buy rating with a $475 price target; analysts overall have a Strong Buy consensus with an average target of $452.32

Broadcom is set to report Q1 FY2026 results on March 4, 2026. The report comes with high expectations from Wall Street and a few things worth watching closely.

Broadcom Inc., AVGO

Analysts project revenue of $19.21 billion for the quarter, which would represent 29% growth compared to the same period last year.

On the earnings side, the consensus estimate sits at $2.02 per share, up 26% year-over-year. Broadcom has beaten analyst estimates in each of the past nine quarters, so the bar is set high going in.

AVGO stock has climbed 60% over the past 12 months, driven largely by demand for the company’s custom AI chips. The stock is down about 8% year-to-date.

The options market is pricing in an implied move of 8.64% around the earnings date, reflecting the level of uncertainty heading into the print.

AI Chip Business in Focus

Broadcom’s AI chip revenue is expected to hit around $8.2 billion this quarter, roughly double what it posted in the same quarter last year. That growth is being driven by large technology companies expanding their data center capacity.

On February 26, Broadcom said demand for a new AI chip built using advanced stacking technology is expected to be very strong. Reuters reported shipments could reach at least one million units by 2027.

The company has also started shipping its first 2nm custom compute system-on-chip, built using its 3.5D eXtreme Dimension System in Package platform. Broadcom says the design improves power efficiency and lowers latency for AI clusters.

That’s a technically meaningful step. Smaller node sizes generally allow for more processing power with less energy, which matters a lot in large-scale AI infrastructure.

VMware Software Segment Under Watch

While the chip side looks strong, analysts are keeping a closer eye on Broadcom’s infrastructure software division, which grew substantially after the VMware acquisition.

UBS analyst Timothy Arcuri reiterated a Buy rating ahead of the report, with a $475 price target. He said recent stock weakness appears to be linked to lower valuation multiples across software companies rather than any issue specific to Broadcom’s chip business.

Arcuri flagged a few risks in the software segment, including potential customer churn at VMware when contracts come up for renewal.

He also pointed to slower growth following recent upgrade cycles and the rise of AI coding tools that could shift more workloads to the cloud.

Wall Street broadly remains positive on the stock. Out of 30 analyst ratings over the past three months, 28 are Buys and two are Holds, with zero Sells.

The average price target across those analysts is $452.32, implying roughly 41.5% upside from current levels.

Broadcom begins shipping its 2nm custom SoC as it heads into the March 4 earnings report.

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