Broadcom’s Backlog Hits $73B as Q1 AI Chip Revenue Seen Doubling
Broadcom’s AI chip business reported $18 billion Q4 revenue (up 28% year-over-year) and $1.74 EPS, supported by a record $73 billion backlog. Management forecasts AI chip revenue to double in Q1 2026, while analysts at JPMorgan and UBS maintain $475 price targets and Bank of America sees $500 upside.
1. Broadcom Posts Robust Q4 Backlog and Accelerating AI Chip Revenue Growth
Broadcom Inc. (AVGO) closed fiscal Q4 with a record backlog of $73 billion, underscoring sustained enterprise demand for its application-specific integrated circuits. In its latest quarter, the company generated $18 billion in revenue—up 28% year-over-year—with non-GAAP EPS of $1.74. Management reiterated guidance that AI chip revenue will double sequentially in Q1 2026, reflecting strong design wins across cloud service providers. Broadcom’s stock has surged approximately 60% over the past 12 months, and consensus analyst ratings remain bullish: JPMorgan and UBS each carry an overweight/buy rating with $475 price targets, while Bank of America maintains a buy rating targeting $500. The combination of an expanding backlog, accelerating AI-related sales, and positive Wall Street sentiment positions AVGO to potentially outperform broader indices in 2026.