{"id":674553,"date":"2026-09-05T23:21:17","date_gmt":"2026-09-05T23:21:17","guid":{"rendered":"https:\/\/www.europesays.com\/ie\/674553\/"},"modified":"2026-09-05T23:21:17","modified_gmt":"2026-09-05T23:21:17","slug":"with-ai-revenue-set-to-surge-400-over-the-next-2-years-broadcom-stock-looks-like-a-buy-on-recent-dip-2","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/ie\/674553\/","title":{"rendered":"With AI Revenue Set to Surge 400% Over the Next 2 Years, Broadcom Stock Looks Like a Buy on Recent Dip"},"content":{"rendered":"\n

With its artificial intelligence (AI) revenue surging and its stock recently stuck in the mud, Broadcom<\/strong> (NASDAQ: AVGO) is starting to look like one of the most attractive stocks in the AI infrastructure space. The designer, developer, manufacturer, and global supplier of semiconductor products is poised to see explosive growth in the coming years, with AI revenue projected to double in fiscal 2027 to $115 billion, up from earlier guidance of $100 billion, and then double again in fiscal 2028 to $230 billion. <\/p>\n

Let’s take a closer look at Broadcom’s recent results and why the semiconductor stock<\/a> looks like a great buy at current levels. <\/p>\n

Missed Nvidia in 2009? This Rare Signal Is Flashing Again.<\/strong>\u00a0In 2009, a “Double Down” signal flashed for a little-known chipmaker called Nvidia.\u00a0For the first time in years, that same “Total Conviction” signal is flashing for a company 1\/100th the size of Nvidia.\u00a0Continue \u00bb<\/strong><\/a> <\/p>\n

\"Broadcom<\/a> Image source: The Motley Fool. Custom chips lead the way<\/strong> <\/p>\n

Broadcom saw its AI semiconductor revenue skyrocket 221% year over year in fiscal Q3 ended Aug. 2. During the quarter, it delivered mass shipments of Ironwood TPU v7 chips to both Alphabet<\/strong> and Anthropic and began shipping Alphabet’s next-generation Tensor Processing Units (TPUs) v8i to the company. Broadcom said it is handling Alphabet’s TPU 8i version for inference<\/a>, while MediaTek<\/strong> is dealing with the v8t version for training. Notably, it brought the 8i version to market more quickly than MediaTek,\u00a0despite a later start. <\/p>\n

The real story, though, was the company’s outlook. The $230 billion AI revenue estimate for fiscal 2028 was well above the $180 billion estimate previously projected by Citigroup<\/strong> analysts. Meanwhile, it said its AI networking business would grow just as quickly as its custom chip business. <\/p>\n

The company laid out where this revenue would come from, saying Anthropic would become its largest customer next fiscal year, with the frontier lab planning to deploy 5 gigawatts of TPU version 8i in fiscal 2027 and then 10 gigawatts in fiscal 2028. Alphabet will continue to be one of its most important customers, with it generating tens of billions of dollars in TPU revenue annually in the coming years. <\/p>\n

OpenAI, meanwhile, is projected to become its second-largest chip customer, with 5 gigawatts of its new Jalape\u00f1o chip and its successor expected to be deployed in 2028. It will also deliver Meta Platforms<\/strong> 3 gigawatts of its custom MTIA chips through 2028, covering three generations. <\/p>\n

Broadcom noted that its fiscal 2027 AI revenue could be higher, with demand currently above its $115 billion revenue projection, but that it needs to improve supply. For 2028, though, it has secured supply to meet its outlook. Given its huge AI revenue growth over the next two years, Broadcom now expects to generate adjusted EPS of over $30 in fiscal 2028. <\/p>\n

Story Continues <\/p>\n

Turning to the company’s fiscal Q3 results, Broadcom’s overall revenue surged 86% year over year to $29.6 billion, while adjusted earnings per share (EPS) soared 96% to $3.32. The results topped analyst expectations, with adjusted EPS of $3.24 and revenue of $29.36 billion, as compiled by LSEG<\/strong>. <\/p>\n

Total semiconductor solutions revenue skyrocketed by 127% year over year to $20.8 billion. Its non-AI chip revenue growth remains sluggish, up just 5% to $4.2 billion in the quarter. Infrastructure software revenue, meanwhile, climbed by 29% to $8.8 billion. <\/p>\n

Overall gross margin came in at 75%, down 210 basis points, as semiconductor revenue makes up a larger share of overall revenue. Software gross margin was 84%, compared with 76% for its semiconductor segment. <\/p>\n

Looking ahead, Broadcom forecasts fiscal Q4 revenue to grow by 93% to $34.8 billion, with AI revenue surging 236% to $21.6 billion. Gross margin is expected to be 73%. <\/p>\n

Time to buy the stock?<\/strong> <\/p>\n

Broadcom is seeing surging revenue while, importantly, also diversifying its AI chip customer base. Despite that, the stock is now trading at a forward price-to-earnings (P\/E) ratio of 11.5 times the fiscal 2028 guidance it just delivered. That’s just incredibly cheap for what is becoming one of the best growth stocks in the AI infrastructure space. <\/p>\n

As such, I’d be a buyer of the stock on this dip. <\/p>\n

Should you buy stock in Broadcom right now? <\/p>\n

Before you buy stock in\u00a0Broadcom, consider this: <\/p>\n

The Motley Fool\u00a0Stock Advisor\u00a0analyst team just identified what they believe are the\u00a010 best stocks<\/strong><\/a>\u00a0for investors to buy now\u2026 and\u00a0Broadcom\u00a0wasn’t one of them.\u00a0The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. <\/p>\n

Consider when\u00a0Netflix<\/strong>\u00a0made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation,\u00a0you’d have $421,997<\/strong>!*\u00a0Or\u00a0when\u00a0Nvidia<\/strong>\u00a0made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation,\u00a0you’d have $1,413,876<\/strong>!* <\/p>\n

That performance is why people listen. With a track record of\u00a0beating the S&P 500 by nearly 5x<\/strong>,\u00a0Stock Advisor\u00a0offers a distinct advantage. Don’t miss the latest top 10 list, available with\u00a0Stock Advisor, and join an investing community built for the long haul. <\/p>\n

See the 10 stocks \u00bb<\/strong><\/a> <\/p>\n

*Stock Advisor returns as of September 5, 2026. <\/p>\n

Citigroup is an advertising partner of Motley Fool Money. Geoffrey Seiler<\/a> has positions in Alphabet, Broadcom, and Meta Platforms. The Motley Fool has positions in and recommends Alphabet, Broadcom, and Meta Platforms. The Motley Fool recommends London Stock Exchange Group Plc. The Motley Fool has a disclosure policy<\/a>. <\/p>\n

With AI Revenue Set to Surge 400% Over the Next 2 Years, Broadcom Stock Looks Like a Buy on Recent Dip<\/a> was originally published by The Motley Fool <\/p>\n","protected":false},"excerpt":{"rendered":"With its artificial intelligence (AI) revenue surging and its stock recently stuck in the mud, Broadcom (NASDAQ: AVGO)…\n","protected":false},"author":2,"featured_media":674554,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[261],"tags":[291,285046,4186,289,290,26663,285047,18,280583,280584,285048,19,17,11674,3447,279295,24147,82],"class_list":["post-674553","post","type-post","status-publish","format-standard","has-post-thumbnail","category-artificial-intelligence","tag-ai","tag-ai-revenue-set-to-surge","tag-alphabet","tag-artificial-intelligence","tag-artificialintelligence","tag-broadcom","tag-broadcom-stock-looks-like-a-buy-on","tag-eire","tag-fiscal-2027","tag-fiscal-2028","tag-fiscal-q3-ended-aug-2","tag-ie","tag-ireland","tag-motley","tag-motley-fool","tag-motley-fool-money","tag-stock-advisor","tag-technology"],"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@ie\/117221004580264536","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/674553","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/comments?post=674553"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/674553\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media\/674554"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media?parent=674553"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/categories?post=674553"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/tags?post=674553"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}