Broadcom stock holds at $416 as AI revenue guidance lifts expectations

Broadcom Inc. (US11135F1012) stock is trading close to $416 per share as of August 13, 2026, while investors weigh explosive growth in AI semiconductor revenue and ambitious guidance for the third quarter of fiscal 2026.

AI-driven growth stands out

Per a recent earnings overview for the second quarter of fiscal 2026, Broadcom generated total revenue of $22.19 billion, representing a 48 percent year-over-year increase compared with the same quarter a year earlier. The networking semiconductor summary notes that non-GAAP earnings came in at $2.44 per share in that quarter, up 54 percent from the prior-year period, underscoring the leverage in Broadcom's business model.

Within that overall performance, AI-related revenue has become the key narrative. In the latest reported quarter, AI semiconductor revenue reached $10.80 billion, a 143 percent year-over-year increase according to a detailed AI revenue breakdown. An AI-focused market wrap highlights that Semiconductor Solutions revenue hit $15.009 billion, rising 79 percent year over year, showing that Broadcom is scaling both general-purpose and AI-specific chips at a rapid pace.

This surge in AI revenue has shifted the internal mix. Networking represented almost 40 percent of AI revenues in the second quarter of fiscal 2026, compared with one-third in the first quarter of fiscal 2026, indicating that data-center and networking applications are becoming a larger share of Broadcom's AI opportunity. The same networking-focused report points out that Broadcom expects to tape out its next-generation 200-terabit switch in fiscal 2026, which would further expand its position in high-bandwidth infrastructure.

Guidance and consensus set a high bar

Forward-looking guidance for fiscal 2026 is aggressive. In commentary discussing the upcoming third quarter of fiscal 2026, management guided for semiconductor revenue from AI to grow more than 200 percent year over year to $16.0 billion, highlighting a steep ramp in AI demand versus the prior-year period when AI semiconductor revenue was significantly lower. A recent AI earnings preview adds that total third-quarter revenue guidance sits near $29.4 billion, implying roughly 84 percent year-over-year growth, with adjusted EBITDA targeted at about 68 percent of revenue.

On the earnings per share side, current consensus for fiscal 2026 implies strong profit growth. A consensus overview indicates that the fiscal 2026 EPS estimate has been revised upward in recent days and suggests a 72 percent year-over-year increase in earnings if management hits its targets. The EPS consensus summary ties this expected EPS expansion directly to the mix shift toward higher-margin AI products and networking solutions.

At the quarterly level, the next earnings release for Broadcom is expected in early September 2026. An earnings calendar overview dated July 30, 2026 indicates that the company is projected to report earnings of $3.22 per share for the quarter ending July 2026, which would represent a 90.53 percent year-over-year increase compared with the same quarter a year earlier. The earnings calendar view also notes that Broadcom's most recent quarter delivered a positive earnings surprise of 1.67 percent versus consensus, reinforcing the pattern of modest beats.

Stock performance and valuation context

Broadcom stock has been supported by this rapid fundamental expansion. As of August 12, 2026, one market snapshot shows the shares closing at $416.05, implying a market capitalization of $1.98 trillion at that price level. A market-position article places this valuation in the context of Broadcom's strategic agreements with major customers, suggesting that investors are assigning a premium multiple to the company's AI and networking franchises.

Intraday trading data from August 13, 2026 shows the stock changing hands at $416.05, with a reported day high of $426.25 and a low of $414.61. A live share-price page indicates that at that price, a target price of $527.88 implies an upside of 21.18 percent from the current level, highlighting how some covering analysts still see room for appreciation if Broadcom delivers on its AI roadmap.

Another trading overview for August 13, 2026 notes that shares of AVGO opened at $416.05, aligning with the closing levels cited in other sources and reinforcing that the stock has consolidated around this price zone over recent sessions. A trading and rating summary also reports that consensus on the stock stands at a moderate buy rating with an average target price of $493.24, which would represent a gain of more than 18 percent from the $416.05 opening price if reached.

Looking at broader performance metrics, one AI-focused analysis points out that Broadcom stock closed at $416.08 on August 11, 2026, with a year-to-date gain of 20.66 percent and a 37.92 percent increase over the last twelve months. The same AI earnings preview uses these performance figures to illustrate how much of the AI-driven good news is already reflected in the share price.

Investor focus on AI infrastructure

For investors tracking Broadcom, the key theme is the scale and durability of AI infrastructure demand. The reported $10.80 billion in AI semiconductor revenue in the latest quarter, coupled with management's guidance for $16.0 billion in AI semiconductor revenue in the third quarter of fiscal 2026, implies a sequential increase of 48 percent and a year-over-year growth rate above 200 percent in that segment. The AI trajectory analysis underscores that such growth rates are unusual for a company of Broadcom's scale, supporting the thesis that AI is transforming its revenue base.

At the same time, the guidance for $29.4 billion in total revenue for the third quarter of fiscal 2026, compared with $22.19 billion in the second quarter of fiscal 2026, suggests that Broadcom expects sequential revenue growth of roughly 32 percent quarter over quarter. The quarterly guidance breakdown frames this jump as part of an ongoing AI-driven wave, with adjusted EBITDA margins targeted at nearly 68 percent of revenue, which would represent a robust profitability profile even as the company scales its AI offerings.

Consensus expectations and prediction markets mirror this optimism but also show a high bar. An AI revenue prediction market indicates that traders assign a 91 percent probability that Broadcom's third-quarter AI revenue will exceed $15 billion and a 73.5 percent probability that it will reach or surpass the guided $16.0 billion. The discussion of AI revenue probabilities suggests that meeting or slightly beating guidance may still be interpreted positively, but a significant miss could weigh on sentiment.

Representative product and technology

One representative area of Broadcom's product portfolio that ties directly into this story is its high-speed networking switches designed for AI data centers. The company has stated that it plans to tape out a next-generation 200-terabit switch in fiscal 2026, aiming to support ever-larger clusters of AI accelerators and high-bandwidth connections between servers. The networking semiconductor analysis emphasizes that these switches are intended to handle the heavy traffic loads associated with AI training and inference, positioning Broadcom as a core supplier of the underlying infrastructure rather than just individual chips.

These networking products complement Broadcom's custom XPUs and AI networking solutions, which collectively serve hyperscale cloud providers and large enterprises deploying AI workloads in production. By combining merchant silicon with custom designs, Broadcom can tailor performance and cost characteristics to specific customer needs while still leveraging its large-scale manufacturing and design capabilities.

Broadcom stock and current trading level

As of August 13, 2026, the most recent completed trading session reflected in multiple market overviews shows Broadcom stock around the $416 mark, with an official close at $416.05 on August 12, 2026 and an opening print at $416.05 on August 13, 2026. That price level leaves the shares below consensus target prices around $493 to $528, implying potential upside in the high teens to low twenties percentage range if those targets prove accurate.

Fact box

Company: Broadcom Inc.

ISIN: US11135F1012

Ticker: AVGO

Exchange: Nasdaq

Price (as of August 13, 2026, 4:00 p.m. ET): $416.05 USD

Market cap: $1.98 trillion (as of August 12, 2026)

Sector / Industry: Information Technology / Semiconductors

Index membership: S&P 500