| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 19 | 46.2x | 17.8x | Bottom tier | |
Growth | 94 | 48.7% | 7.1% | Top tier | |
Quality | 97 | 26.8% | 4.5% | Top tier | |
Safety | 84 | 0.7x | 2.6x | Top tier | |
Capital Return | 23 | 0.70% | 2.12% | Bottom tier | |
Momentum | 55 | 12.6% | 2.9% | Around median | |
Sentiment | 90 | 27 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Broadcom operates through two interconnected businesses: semiconductor solutions and infrastructure software. The first includes custom AI accelerators, XPUs, Ethernet networking products such as Tomahawk, and optical interconnect components, alongside non-AI semiconductors; while the second includes VMware Cloud Foundation and private cloud, security, and compliance solutions. In Q3 fiscal 2026, semiconductor solutions represented 70% of revenue at $20.8 billion, while infrastructure software represented 30% at $8.8 billion.
Q3 fiscal 2026 revenue reached a record $29.6 billion, up 86% year over year, driven by AI semiconductor revenue reaching $16.7 billion, or 56% of total revenue, after growing 221% year over year and 54% sequentially. According to EDGAR data, gross profit was $20.5 billion, net income was $13.1 billion, and GAAP earnings per share were $2.68; while on a Non-GAAP basis, the company recorded a gross margin of 75%, an operating margin of 67.9%, and earnings per share of $3.32.
The semiconductor business achieved an operating margin of 61% in Q3 fiscal 2026, while the infrastructure software operating margin was approximately 84%. Broadcom also generated record free cash flow of $13.7 billion, equivalent to 46% of revenue, and ended the quarter with $24 billion in cash after repaying $5.6 billion of long-term debt.
The average analyst target is $509.61, compared with a wide target range of $350 to $600 and an overall consensus of Buy; the average is slightly above the top of the 52-week range of $495. However, Evercore ISI lowering its target to $578 and TD Cowen lowering its target to $475 highlight that analysts disagree on how much value should be assigned to the AI growth path. The price-to-earnings ratio of 61.1 times cited in the September 2, 2026 report indicates that the valuation assumes strong execution against the forecasts of $115 billion in fiscal 2027 and $230 billion in fiscal 2028, increasing the stock's sensitivity to any setback in supplies, margins, or data center deployment.
Figures in the text are as of 2026-09-10; the live price is shown at the top of the page.
The largest driver was AI semiconductors, whose revenue increased 221% year over year and 54% sequentially to $16.7 billion. This revenue represented 56% of Broadcom's total revenue of $29.6 billion. XPU shipments also increased by more than 3.5 times year over year and accounted for 73% of AI revenue, alongside growth of more than 2.5 times in AI networking revenue.
Broadcom expects AI revenue of $58 billion in fiscal 2026, up 186% year over year. Management believes revenue could double to approximately $115 billion in fiscal 2027 and then to $230 billion in fiscal 2028. The company said it has secured the supplies needed for both forecasts, but explained that execution also remains tied to the readiness of data center sites, power, memory, and substrates.
In Q3 fiscal 2026, Broadcom shipped the Ironwood TPU v7 processor to Anthropic and Google and began producing TPU v8i for Google. It also shipped Jalapeno, the first custom accelerator for OpenAI, and plans to begin production shipments of Meta's MTIA accelerator in Q4 fiscal 2026. Published plans include 5 gigawatts of TPU v8i for Anthropic in fiscal 2027 and 1.3 gigawatts of Jalapeno for OpenAI in fiscal 2027.
Automated analysis for informational purposes only — not investment advice.
Yes, because XPUs with high memory content have become a larger part of the revenue mix. The Non-GAAP gross margin fell by 210 basis points sequentially to 75% in Q3 fiscal 2026, and Broadcom expects a gross margin of approximately 73% in Q4 versus 78% a year earlier. In contrast, rapid growth raised the Non-GAAP operating margin to 67.9% in Q3, and management expects to maintain an operating margin of approximately 66% in Q4.
The infrastructure software business generated revenue of $8.8 billion in Q3 fiscal 2026, up 29% year over year, and represented 30% of the company's total revenue. Annual recurring revenue grew 15%, while the business's operating margin reached approximately 84%. VMware Private AI Cloud provides enterprises with a platform to build and run AI applications and agents while integrating infrastructure, security, compliance, and data protection.
The risks include the concentration of XPU programs among six customers and constraints involving advanced wafers, substrates, HBM memory, and optical interconnect components. Shipment timing also depends on the readiness of land, power, and data center buildings, which are projects with long lead times. In June 2026, Broadcom established the AI XPV platform with Apollo and Blackstone and closed an initial $35 billion tranche to deploy one gigawatt for Anthropic, with the possibility of providing modest residual value guarantees as contingent obligations.
