Broadcom Q3 Earnings Preview: Can 'Sustained AI Order Momentum' Help Company With History Of Beating Estimates?

Broadcom Earnings Preview

Broadcom Inc. (AVGO) is scheduled to release its fiscal 2023 third-quarter earnings on Thursday, November 3, after the market closes.

The semiconductor company is expected to report earnings of $9.56 per share on revenue of $8.91 billion, according to analysts surveyed by Refinitiv. This would represent a year-over-year increase of 20% in earnings and 12% in revenue.

AI Demand Driving Growth

Broadcom has been a beneficiary of the growing demand for artificial intelligence (AI) chips. AI is used in a wide range of applications, from self-driving cars to facial recognition software.

In its previous earnings report, Broadcom said that its AI business grew by 25% year-over-year in the second quarter. The company also said that it expects this growth to continue in the third quarter.

History of Beating Estimates

Broadcom has a history of beating analysts' expectations. In the past four quarters, the company has beaten earnings estimates by an average of 5%.

This track record of outperformance suggests that Broadcom may be able to beat expectations again in the third quarter.

Key Factors to Watch

Investors will be watching several key factors when Broadcom reports earnings on Thursday.

These factors include:

• The company's AI business
• The overall demand for semiconductors
• The company's guidance for the fourth quarter

Conclusion

Broadcom is expected to report strong earnings growth in the third quarter. The company's AI business is a key driver of this growth.

Investors will be watching several key factors when Broadcom reports earnings on Thursday, including the company's AI business, the overall demand for semiconductors, and the company's guidance for the fourth quarter.