Earnings

Broadcom Enters Earnings As Citi's Top Semiconductor Pick

Boluwatife Remy — Wed, 13 May 2026 19:31:27 +0000

The question surrounding Broadcom (NASDAQ:AVGO) heading into its next earnings report is not whether the company belongs among the AI trade’s biggest winners. That debate ended a long time ago. The more pressing question is whether a business already generating tens of billions in AI-related revenue can keep growing fast enough to justify a valuation that has briefly crossed $2 trillion.

Citi’s answer, for now, is yes. Analyst Atif Malik raised his price target on the stock from $475 to $500 on May 12, kept his Buy rating in place, and named Broadcom his top semiconductor pick for 2026. The timing was deliberate. Broadcom reports its fiscal second-quarter results on June 3, and Malik is going on record ahead of the print rather than reacting to it afterward, a meaningful signal of conviction given how far the stock has already traveled.

The Numbers Behind the Confidence

The bullish case starts with what Broadcom has already delivered. In its most recent quarter, the company posted revenue of $19.3 billion, up 30% year over year, with AI semiconductor revenue coming in at $8.4 billion, more than doubling from the same period a year earlier. Those are not the numbers of a company riding a temporary wave. They reflect a business that has become structurally embedded in how the world’s largest technology firms build their AI systems.

Management has guided for revenue of roughly $22 billion in the June quarter, representing nearly 47% year-over-year growth, with AI semiconductor revenue projected at $10.7 billion. Analysts are modeling earnings per share of around $2.32, compared with $1.60 in the same quarter last year.

Underpinning ...

Selected financial and operational highlights (in millions of Canadian dollars)
	Three months ended March 31
	2026 $	2025 $

Distribution revenue	254.4	240.2
Net income after net movements in regulatory balances	46.5	53.2
Capital expenditures	250.5	244.7

Earnings

Broadcom Enters Earnings As Citi's Top Semiconductor Pick

The Numbers Behind the Confidence

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