$AVGO earnings call cleared up the initial miss panic — and the forward guidance is absolutely wild.
Broadcom now expects:
• FY27: ~$115B revenue (+100% growth)
• FY28: ~$230B revenue (+100% growth)
Street was modeling ~$180B for FY28. This is a massive beat on forward expectations.
Demand actually exceeds this outlook — supply is the bottleneck, not customer appetite. Management said they're working to scale production. This echoes the $NVDA playbook: guide conservatively near-term, blow out long-term.
They also expect to exceed $30 EPS in fiscal 2028. At $367/share, that's roughly 12.2x forward P/E — absurdly cheap for a 100% growth trajectory in AI infrastructure.
Bonus quote: "AI networking revenue is expected to grow just as fast as XPUs over the next few years." Translation: networking is not a sideshow. It's scaling in lockstep with compute.
The AH selloff looks like a knee-jerk reaction to a soft near-term quarter. But if you zoom out, this guidance is insane. Market may have overreacted.
Broadcom now expects:
• FY27: ~$115B revenue (+100% growth)
• FY28: ~$230B revenue (+100% growth)
Street was modeling ~$180B for FY28. This is a massive beat on forward expectations.
Demand actually exceeds this outlook — supply is the bottleneck, not customer appetite. Management said they're working to scale production. This echoes the $NVDA playbook: guide conservatively near-term, blow out long-term.
They also expect to exceed $30 EPS in fiscal 2028. At $367/share, that's roughly 12.2x forward P/E — absurdly cheap for a 100% growth trajectory in AI infrastructure.
Bonus quote: "AI networking revenue is expected to grow just as fast as XPUs over the next few years." Translation: networking is not a sideshow. It's scaling in lockstep with compute.
The AH selloff looks like a knee-jerk reaction to a soft near-term quarter. But if you zoom out, this guidance is insane. Market may have overreacted.
