- Price
- $346.28 → $352.81(+1.9%)
- Discount
- 46.7% → 45.7%(−1.0 pts)
- Thesis
- Most of Broadcom's fair value comes from thedepends on its AI chip business, which is still new. Management saidThe market doubts this business will grow to the scale management has guided. Two of Broadcom's largest AI customers borrow money or raise capital to buy chips. This makes part of the demand look less certain than demand paid from a customer's own cash. For the gap to close, Broadcom must show its FY2027 AI chip revenue will reach about $115 billiontarget is on track each quarter. Newer customers, like Anthropic, must also keep expanding their committed capacity as planned. Anthropic plans to use 1 gigawatt of Broadcom chips in FY20272026, growing to much more from 2027. ThisBroadcom's fiscal Q4 2026 earnings report, expected near early December 2026, is about double the FY2026 number. The stock price does not yet reflectnext checkpoint on this planned growthtarget. If the growth happens as management saysramp stays on pace, the stock pricegap can move up to close over the next three to five quarters. If a large customer slows spending, or a rival takes share, the gap could last longer.
- Recent events
- 2026-09-02: Broadcom reported Q3 FY2026 results. Revenue was $29.59 billion, up 86% from last year. AI chip revenue was $16.7 billion, up 221% from last year.
2026-09-02: Management guided Q4 FY2026 revenue to about $34.8 billion. About $21.7 billion of this is AI chip revenue.
2026-09-02: Management said FY2027 AI chip revenue will be about $115 billion. This is about double the FY2026 number.
2026-09-02: Broadcom said Anthropic is on track to become its largest AI chip customer in 2027, and to stay its largest customer in 2028. Broadcom plans to deploy 1 gigawatt of Ironwood chips for Anthropic in 2026, growing to about 5 gigawatts of TPU v8i chips in 2027 and 10 more gigawatts in 2028.