$Broadcom(AVGO)$ will report earnings Thursday, and expectations are already high.
Analysts are looking for:
💰 Revenue: $29.4B, +84.5%
📈 Adjusted EBITDA: $20B, +86.6%
💵 Net Income: $16B, +287%
🔥 EPS: $3.24, +268%
💸 FCF: $14B, +99%
But the bigger story for me is still custom AI silicon.
Broadcom is working with OpenAI on its Jalapeño inference chip, which was designed specifically for AI workloads. OpenAI's published benchmarks show strong performance and power-efficiency advantages versus Nvidia's GB200/GB300 on several inference workloads.
And OpenAI isn't the only hyperscaler working with Broadcom. $Meta Platforms, Inc.(META)$ and $Alphabet(GOOGL)$ are also developing custom AI chips with the company.
That's what makes $AVGO interesting.
If custom accelerators continue gaining traction alongside $NVIDIA(NVDA)$ GPUs, Broadcom could benefit from a much larger pool of AI infrastructure spending.
The real question is whether the Jalapeño results and broader custom-chip demand are strong enough to push expectations beyond what's already priced into $AVGO. 👀
With earnings coming Thursday, this is definitely one I'm watching closely.
Big numbers are expected. The real test is whether Broadcom can raise the bar again. 🎯📊
Comments