- Broadcom (AVGO) has secured major new AI chip deals with Alphabet (GOOGL) and Anthropic.
- Despite a recent price slip, the company’s Q1 FY2026 revenue surged 29% to $19.3 billion, with net income up 34% to $7.3 billion.
- CEO Hock Tan projects the company’s AI chip revenue will exceed $100 billion in 2027, with EPS forecast to grow 66% in FY2026.
In 2026, Broadcom (AVGO) has emerged as a formidable, albeit underrated, competitor in the AI chip space, securing critical custom chip deals with tech giants like Alphabet and Anthropic. Consequently, its strategic partnerships are positioning its semiconductor assets as highly valuable commodities in an intensely competitive market.
Renewed AI pessimism has indeed dragged AVGO and its peers lower over the last two months. However, the company remains a healthy competitor to NVIDIA (NVDA) and recently posted exceptionally strong quarterly results.
Its first-quarter fiscal 2026 revenue totaled $19.3 billion for the period ending Feb. 1, marking a 29% annual increase. Meanwhile, net income of $7.3 billion rose at an even faster rate of 34% during the same period.
The growth trajectory is expected to accelerate, with EPS forecast to grow 66% in FY 2026 and 57% in FY 2027. Furthermore, CEO Hock Tan says the company’s AI chip revenue will exceed $100 billion in 2027, according to several forecasts.
This continued revenue boom would be a direct catalyst for AVGO shares to resume their rally. Combined with its successful partnerships, Broadcom presents a compelling investment case at its current valuation.
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