Broadcom’s (AVGO) AI and Compute Demand Remain Robust, Bernstein Reaffirms Bullish Outlook

Core Insights - Broadcom Inc. is recognized as a significant player in the AI sector, with a strong performance in Q3 earnings, particularly in AI semiconductors, which generated revenues of $5.2 billion [1][2] - The company’s leadership expressed confidence in achieving a $90 billion revenue target by 2030, driven by strong compute demand from hyperscalers and LLM developers [2][3] - Broadcom is well-positioned in the AI revolution due to its custom chip offerings and networking assets, with expectations of a strong trajectory in AI growth leading into 2026 [3] Financial Performance - Broadcom's Q3 earnings exceeded expectations, with both semiconductor and software segments performing well [1] - AI semiconductor revenues were notably robust at $5.2 billion, despite a slower recovery in non-AI semiconductors [1] Strategic Outlook - The company’s CEO and CFO indicated that the demand for compute resources remains strong, with significant growth potential from existing customers [2] - Broadcom is targeting $10 billion in revenue from OpenAI by Q3 2026, with additional orders anticipated [3] - The company is expected to leverage its software capabilities, cash deployment, and strong margins to enhance its growth trajectory in the AI sector [3]