Broadcom stock weighs AI growth against a 66 percent margin outlook

Published on 09/28/2026 at 17:21 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Broadcom stock was last at USD 349.33 on September 28, 2026, while BMO raised its target to USD 575.00. Q3 AI revenue rose 221 percent.

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Broadcom stock (ISIN US11135F1012) was last at USD 349.33 on Nasdaq at 11:19 a.m. ET on September 28, 2026, down 0.99 percent from the prior session. The company is now measured against fiscal Q3 revenue of USD 29.6 billion and a fiscal Q4 revenue outlook of USD 34.8 billion, both disclosed on September 2, 2026.

AI revenue reaches USD 16.7 billion

According to Broadcom on September 2, 2026, fiscal Q3 AI semiconductor revenue reached USD 16.7 billion, up 221 percent year over year and 54 percent from the prior quarter. That figure represented 56 percent of total revenue, giving the semiconductor business a much larger role in the quarterly mix.

The same release showed GAAP operating income of USD 16.0 billion, up 171 percent year over year, while GAAP diluted earnings per share rose 215 percent to USD 2.68. Cash from operations reached USD 14.2 billion and free cash flow stood at USD 13.7 billion for the quarter ended August 2, 2026.

Margin guidance tests the AI story

Broadcom's fiscal Q4 guidance calls for USD 34.8 billion in revenue, up 93 percent from the prior-year period, with non-GAAP operating income at 66 percent of projected revenue, according to Broadcom. The growth rate is substantial, but the margin outlook matters because management also reported that higher AI semiconductor mix reduced fiscal Q3 gross margin to 75 percent.

AI demand remains the central operating comparison. The fiscal Q4 AI revenue outlook is USD 21.7 billion, up 236 percent year over year, while infrastructure software revenue was USD 8.8 billion in fiscal Q3, up 29 percent year over year, according to The Motley Fool on September 2, 2026.

Analyst target stands 64.67 percent higher

On September 3, 2026, BMO Capital Markets raised its Broadcom price target from USD 455.00 to USD 575.00 and maintained an outperform rating, MarketBeat reported. The new target lies 64.67 percent above Broadcom stock's USD 349.33 Nasdaq price, a gap that places execution and valuation alongside the growth figures.

For investors, the key tension is visible in the data: AI semiconductor revenue is expanding faster than the broader company, while the projected 66 percent non-GAAP operating margin is below the fiscal Q3 level of 67.9 percent. Broadcom also authorized a quarterly dividend of USD 0.65 per share payable September 30, 2026, adding a cash-return element to the growth narrative.

Broadcom stock stays below its yearly high

Broadcom stock was last at USD 349.33 on Nasdaq on September 28, 2026, with an intraday range of USD 347.32 to USD 355.85. Its 52-week range is USD 289.96 to USD 495.00, while market capitalization is USD 1,662.0 billion and volume stood at 5,577,052 shares.