Oppenheimer sends clear message on Broadcom ahead of earnings

His reasoning is specific, and it goes beyond the header gross number.

Oppenheimer reiterates Broadcom bargain standing up of June 3 report

Oppenheimer expert Rick Schafer, a top-100 Wall Street expert with a 70.74% occurrence complaint and 26.8% mean return, reiterated his Broadcom (AVGO) bargain standing and $450 terms people connected May 29 up of the company's fiscal Q2 net report, according to TipRanks.

"We spot upside F2Q results and F3Q outlook led by AI," Schafer said successful the note. The telephone positions him squarely successful the beat-and-raise camp: Broadcom volition not conscionable just expectations for the quarter, Schafer believes, but volition besides rise guidance for the July quarter.

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That is simply a meaningful statement, fixed wherever expectations presently sit. Consensus estimates telephone for Q2 gross of $22.12 cardinal and GAAP EPS of $1.73.

Schafer expects Broadcom to bushed some numbers and awesome that AI momentum is carrying into the 2nd fractional of the fiscal year, according to Seeking Alpha.

What Broadcom's AI concern looks similar heading into net report

Broadcom's Q1 2026 results gave Schafer a beardown instauration for his argument. The institution posted grounds gross of $19.31 cardinal successful Q1, up 29% twelvemonth implicit year, driven chiefly by customized AI semiconductor demand, according to 24/7 Wall St.

For Q2, the institution itself guided for AI spot gross of $10.7 billion. Schafer believes that fig volition beryllium exceeded by astir 30% quarter-over-quarter maturation successful the AI segment. That would enactment AI gross person to $11.5 cardinal for the quarter.

CEO Hock Tan has reiterated visibility toward AI spot gross "in excess of $100 billion" by 2027, with proviso capableness locked successful done 2028. That multi-year visibility is simply a halfway portion of wherefore analysts similar Schafer stay constructive adjacent astatine existent valuation levels, 24/7 Wall St confirmed.

Why customized spot concern is cardinal adaptable heading into earnings

Broadcom does not vie with Nvidia for GPU sales. It competes successful a antithetic and arguably much defensible portion of the AI infrastructure stack: customized application-specific integrated circuits designed for circumstantial workloads astatine circumstantial hyperscalers.