Broadcom Q3 Earnings Preview: AI Momentum Key as Firm Looks to Extend Earnings Beat Streak

Can sustained AI momentum help Broadcom beat estimates in Q3?

Broadcom Inc. (NASDAQ:AVGO) is set to report its fiscal 2023 third-quarter results on Thursday, November 3, after the market close.

Analysts expect the semiconductor giant to post adjusted earnings of $9.82 per share on revenue of $8.91 billion. This would represent year-over-year growth of 30.6% and 20.6%, respectively.

Broadcom has a history of beating estimates

Broadcom has a history of beating consensus earnings estimates, having done so in each of the past four quarters.

In the second quarter, the company reported adjusted earnings of $10.44 per share, beating the consensus estimate of $9.58 per share by 9.0%.

AI momentum could be a key driver of growth in Q3

One of the key drivers of Broadcom's growth in recent quarters has been its strength in the artificial intelligence (AI) market.

The company's products are used in a wide range of AI applications, including data centers, networking, and autonomous vehicles.

Recent acquisitions have strengthened Broadcom's AI portfolio

Broadcom has made several acquisitions in recent years to strengthen its AI portfolio, including the acquisition of VMware in May 2022.

VMware is a leader in virtualization software, and its products are used by many of the world's largest companies.

The acquisition of VMware is expected to help Broadcom accelerate its growth in the AI market.

• In a recent research note, analysts at Bank of America said that they expect Broadcom's AI momentum to continue in Q3.
• The analysts said that they expect the company to report strong growth in its data center and networking businesses, which are both benefiting from the growth of AI.

Overall, Broadcom is well-positioned to continue its growth in the AI market.

The company's strong product portfolio, recent acquisitions, and history of beating estimates make it a good bet to continue its strong performance in Q3.