Broadcom Q1 AI Sales to Nearly Double to $8.2B with 29% Revenue Growth
Broadcom’s shares have fallen 24% since December, underperforming broader indexes as investors question AI-related investment sustainability. Analysts expect fiscal Q1 adjusted EPS of $2.03 (27% growth) on $19.3bn revenue (29% growth), with AI sales nearly doubling to $8.2bn, while updates on the $73bn order backlog are awaited.
1. Share Performance and Investor Sentiment
Since hitting a December record, Broadcom shares have slid 24% and lagged the S&P 500 as investors rotate away from large tech names over AI investment sustainability concerns. The stock’s underperformance highlights market skepticism that strong AI partnerships alone can reverse its months-long downtrend.
2. Fiscal Q1 Earnings Forecast
Analysts forecast Broadcom will report adjusted earnings of $2.03 per share in fiscal Q1, a 27% year-over-year increase, on revenue of $19.3bn, up 29%. AI-related sales are projected to climb to about $8.2bn, nearly doubling from the prior year, underscoring the company’s growing exposure to AI-driven demand.
3. AI Backlog and TPU Developments
Investors are focused on updates to Broadcom’s $73bn AI product order backlog over the next six quarters and the status of its custom TPU chips being built for Google. Future growth may also hinge on contributions from a deal with OpenAI and the company’s ability to deliver successive TPU generations.