Broadcom: AI Chip Surge Boosts Q3 Revenue Outlook, Margin Pressure in Focus

Broadcom guides Q3 revenue of about $29.4 billion (+84% YoY) with AI semiconductors near $16 billion (up >200% YoY); gross margin is expected to fall to about 74% due to a heavier AI-chip mix, while non‑AI semiconductors and VMware software remain growth drivers. The consensus is about $29.47 billion in revenue and $3.22 per share. AI demand from Google, Anthropic, OpenAI and Meta supports long‑term growth, but the stock faces risk from margin pressure and a rich valuation ahead of the results.