Broadcom guides to big numbers but investors wanted more. Why we're OK to hold for now

Broadcom beat quarterly earnings expectations and issued a strong multiyear outlook for its AI custom-chip business, but investors wanted a larger push in the outer years. For fiscal Q3 2026 ended Aug. 2, revenue rose 85% year-over-year to $29.59 billion, slightly above the $29.36 billion consensus, according to LSEG. Adjusted EPS climbed 96% to $3.32 versus $3.24 expected. Shares were modestly lower in extended trading. Broadcom forecast AI revenue of $58 billion for fiscal 2026, up from $56 billion, with FY2027 guidance raised to $115 billion, constrained by supply. The key stock-moving detail was a projected doubling to $230 billion in AI revenue for fiscal 2028, above FactSet consensus.