ETFs to Buy as Broadcom Shares Jump 5% After Q1 Earnings Beat

Core Insights - Broadcom Inc. (AVGO) shares rose nearly 5% in after-hours trading on March 4, 2026, following strong first-quarter fiscal 2026 results, with expectations of AI revenues exceeding $100 billion by 2027 as stated by the CEO [1][2] Financial Performance - In the first quarter of fiscal 2026, Broadcom's adjusted earnings per share exceeded the Zacks Consensus Estimate by 1% and increased by 28.1% year over year, while revenues grew by 29% year over year, surpassing consensus expectations [6] - The company anticipates consolidated revenues of approximately $22 billion for the fiscal second quarter, reflecting a 47% year-on-year growth, with AI semiconductor revenues projected to reach $14.8 billion, marking a 76% increase year on year [8] Business Segments - The growth in revenue was primarily driven by the AI semiconductor segment, while the non-AI semiconductor business experienced flat year-over-year growth due to offsetting factors in enterprise networking, broadband, and server storage [7] - Broadcom ended the fiscal first quarter with an inventory of $3 billion to support strong AI demand [7] Customer Demand - Broadcom expects demand for 1 gigawatt (GW) of TPU compute from Anthropic in 2026, with projections to exceed 3 GW in the following year, alongside strong demand from Google for its seventh-generation Ironwood TPU [9] Investment Opportunities - Investors interested in gaining exposure to Broadcom and the AI industry may consider adding AVGO to their portfolios, especially given its strong revenue growth [2] - Several ETFs provide significant exposure to Broadcom, including: - Invesco PHLX Semiconductor ETF (SOXQ) with a 7.02% share of the fund [11] - VanEck Semiconductor ETF (SMH) with a 7.04% share [12] - iShares Semiconductor ETF (SOXX) with a 5.45% share [13] - Fidelity MSCI Information Technology Index ETF (FTEC) with a 4.27% share [14]