Broadcom Shares Rise 4.9% After Beating Earnings Estimates

Semiconductor manufacturer reports strong Q1 results and provides upbeat guidance

Published on Mar. 5, 2026

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Broadcom Inc. (NASDAQ:AVGO) saw its stock price rise 4.9% on Thursday after the company announced better-than-expected quarterly earnings. The semiconductor manufacturer reported Q1 revenue of $19.31 billion, up 29.5% year-over-year, and adjusted earnings per share of $2.05, beating the consensus estimate of $2.03.

Why it matters

Broadcom's strong financial performance, driven by a 106% increase in AI semiconductor sales, has been well-received by the market. The company's upbeat guidance for Q2 revenue of around $22 billion, well above analyst estimates, and CEO Hock Tan's long-term projection of AI chip revenue exceeding $100 billion by 2027 have further bolstered investor confidence in the company's growth prospects.

The details

In addition to the earnings beat, Broadcom announced a $10 billion share repurchase program and reported strong cash flow metrics, which are expected to support earnings-per-share accretion and provide buyback-driven support for the stock. The company also started shipping its 3.5D 2nm custom compute SoC, which supports its long-term XPU roadmap, although this new product is not expected to have a meaningful impact on near-term revenue. However, the company's enterprise software business, which includes its VMware exposure, grew only 1% year-over-year, representing a weaker segment compared to the booming semiconductor business.

  • Broadcom reported Q1 2026 earnings on March 5, 2026.
  • The company's Q2 2026 revenue guidance was provided on March 5, 2026.

The players

Broadcom Inc.

A global technology company that designs, develops, and supplies semiconductor and infrastructure software solutions for a broad range of markets, including wired and wireless communications, enterprise and cloud storage, and networking.

Hock Tan

The CEO of Broadcom, who projected that the company's AI chip revenue could exceed $100 billion by 2027.

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What they’re saying

“We must not let individuals continue to damage private property in San Francisco.”

— Robert Jenkins, San Francisco resident (San Francisco Chronicle)

“Fifty years is such an accomplishment in San Francisco, especially with the way the city has changed over the years.”

— Gordon Edgar, grocery employee (Instagram)

The takeaway

Broadcom's strong financial performance, driven by its booming semiconductor business and particularly its AI chip sales, has been well-received by the market. The company's upbeat guidance and long-term projections for its AI chip revenue have further bolstered investor confidence in its growth prospects, even as its enterprise software segment remains a relative drag on its overall performance.