After NVIDIA, Broadcom's Earnings Are Next—Here's What to Watch

Key Points

• While markets have seemingly become jaded to NVIDIA's consistent earnings beats, Broadcom has seen some dramatic post-earnings moves.
• Analysts project sales growth of over 45% in Broadcom's latest quarter and an even greater EPS increase.
• However, Alphabet could be the most closely watched talking point on Broadcom's call.

NVIDIA NASDAQ: NVDA tends to dominate headlines within the artificial intelligence (AI) trade. However, Broadcom NASDAQ: AVGO has quite clearly made a name for itself as a custom chip giant, briefly eclipsing a $2 trillion market capitalization. Notably, the stock outperformed NVIDIA in 2025, delivering a total return near 51% versus NVIDIA's 40% return. AVGO is also moderately beating NVIDIA in 2026, with a return near 20%.

Markets seem to have become immune to NVIDIA’s strong earnings reports. Shares have fallen by an average of 2.8% following NVIDIA’s last four reports, despite the company posting top and bottom line beats each time. This includes its most recent earnings, after which shares fell 1.8%.

Meanwhile, Broadcom has seen much greater post-earnings volatility, rising as much as 9.4% over its last four reports and falling as much as 11.4%. Relative to NVIDIA, investors seem to still be getting their heads around how exactly to view Broadcom.

Broadcom’s next earnings report is quickly approaching, with results coming after the market close on June 3. Sales, earnings, and guidance will all be in focus, but one of the biggest talking points could be around Broadcom’s partnership with Alphabet NASDAQ: GOOGL.

Analysts Project Sales and Earnings Growth Above 45%

Like NVIDIA, Broadcom has beaten estimates on both sales and adjusted earnings per share (EPS) in its last four earnings reports. To do this again in its Q2 fiscal 2026 (FY2026), Broadcom will need to post sales above $22.04 billion and adjusted earnings per share (EPS) above $2.40. Note that Broadcom’s fiscal reporting period is slightly ahead of the calendar year period.

Estimates project sales growth of 47% year-over-year (YOY) and adjusted EPS growth of 52% YOY. This sales estimate is essentially in line with Broadcom’s own guidance of $22 billion, while Broadcom does not provide adjusted EPS guidance.

Broadcom does provide guidance on adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) margin. It expects the figure to come in at 68%, while analysts are forecasting around 68.6%. Given Broadcom’s generally conservative guidance, there is much reason to believe that the company could beat on all of these metrics.

Guidance expectations for Q3 FY2026 come in at approximately $28.7 billion for revenue, or a growth rate near 80% YOY. Analysts also project a sequential step down in adjusted EBITDA margin to 67.8%.

Broadcom and Alphabet: Will the TPU Push Be Broadcom’s Next Catalyst?

Surely, investors will pay attention to news regarding any new deals with AI model developers, which Broadcom has often announced in prior quarters. However, there will likely be a significant amount of time spent on the earnings call discussing Alphabet.

Alphabet is Broadcom’s top custom chip customer, with Broadcom helping the company develop its tensor processing units (TPUs). Notably, Alphabet announced at its latest earnings call that it would start selling TPUs to third-party data center operators. Traditionally, Alphabet has used TPUs for internal purposes and rented TPUs to Google Cloud customers.

Thus, the firm’s push to sell TPUs externally represents a new and potentially very large market. The more TPUs Alphabet sells to external customers, the more revenue Broadcom should generate due to the co-development partnership. However, investors do not know the exact financial details of this arrangement, and how it may differ with external sales.

Still, investors and analysts will likely be keen to hear any light that Broadcom can shed on this effort. It may be too early to get concrete information, as not much time has passed since Alphabet made this announcement near the end of April.

However, it’s also possible that the companies are seeing strong early signs. Encouraging TPU commentary, or even a possible increase in Broadcom’s AI semiconductor sales forecasts, would likely garner a positive reception from markets. Given the outstanding results Alphabet recently posted, it would not be surprising to see Broadcom deliver a strong report as well.

Broadcom Receives Bullish Price Targets as Earnings Approach

None of this is to say that Broadcom will or will not post beats and better-than-expected guidance, let alone that investors will push shares up after the report.

Post-earnings reactions can be fickle—even if a company delivers on headline figures, shares can fall considerably. This is especially true for stocks that have risen sharply, like Broadcom and is compounded by continued skepticism about the AI trade from many investors.

Going into the report, analysts remain optimistic about Broadcom’s future. The MarketBeat consensus price target near $448 implies upside of about 10%. However, it is worth zooming in on price targets released since the beginning of May. These likely incorporate information from Alphabet and Meta Platforms NASDAQ: META earnings reports—another large Broadcom customer. Notably, targets updated after these companies reported are much higher, averaging around $523. This figure implies considerable upside in the stock of 25%.