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As the dominant force in custom AI accelerators and enterprise infrastructure software, Broadcom sits at the intersection of the two most powerful trends in technology: the explosive buildout of AI data centers and the consolidation of enterprise IT under cloud-native platforms. From designing custom chips for Google, Meta, and now Anthropic and OpenAI, to integrating VMware into a subscription-based software powerhouse, Broadcom has transformed from a diversified semiconductor company into the picks-and-shovels play for the AI era. What separates Broadcom from a pure AI trade is its dual-engine model: AI semiconductors drive hypergrowth while infrastructure software provides recurring revenue stability and margin expansion.
This article covers AVGO's 2026 performance (as of mid-July 2026), the bullish and bearish forces shaping its outlook and how to trade Broadcom on Bybit.
Key takeaways:
Broadcom's Q2 FY2026 revenue hit a record $22.19 billion (up 48% YoY), with AI semiconductor revenue surging 143% and representing 68% of total revenue.
The company guided full-year FY2026 AI semiconductor revenue of $56 billion and Q3 consolidated revenue of $29.4 billion, signaling continued acceleration.
You can trade AVGO on Bybit through a TradFi Perpetual Contract — trade the AVGOUSDT pair 24/7 using your existing UTA account.
As of mid-July 2026, Broadcom has a market capitalization of approximately $1.8–$1.9 trillion, placing it among the world's most valuable companies and reflecting its transformation into a core AI infrastructure provider.
Market cap: ~$1.8–$1.9 trillion
Current share price: ~$374–$404 (range in July 2026)
YTD performance: +29% (from ~$290 in July 2025)
52-week range: ~$290–$494
Analyst consensus price target: ~$501 (26 analysts, predominantly Buy)
P/E ratio: ~60x
A consensus Buy rating with a ~$500 target against a ~$380 current price tells you analysts see room to run, but the elevated P/E means execution on AI growth must continue at pace — any deceleration would compress the multiple quickly.
Q2 FY2026 revenue of $22.19 billion beat expectations, up 48% year-over-year, with AI semiconductor revenue of $10.8 billion — up 143% YoY — now representing 68% of total chip revenue.
Full-year FY2026 AI semiconductor revenue guidance of $56 billion implies massive acceleration in H2, with Q3 alone guided to $16 billion (200%+ YoY growth).
Record operating margin of 67.3% and free cash flow of $10.3 billion (46% of revenue) in Q2 demonstrate exceptional profitability at scale.
Customer expansion in custom AI accelerators — beyond Google, Broadcom is now designing chips for Anthropic and OpenAI, diversifying its hyperscaler customer base.
Infrastructure software revenue of $7.2 billion in Q2 (guided to $8.9 billion in Q3) provides a stable, recurring revenue base with high margins from VMware integration.
Q3 FY2026 consolidated revenue guidance of $29.4 billion implies 88% year-over-year growth, suggesting the growth rate is actually accelerating, not decelerating.
Quarterly dividend of $0.65 per share provides income even for a growth stock, with substantial buyback capacity from free cash flow.
Valuation at ~60x trailing P/E leaves minimal margin for error — any miss on AI revenue growth could trigger a sharp correction given elevated expectations.
Customer concentration risk remains high — Google alone represents a significant share of AI semiconductor revenue, and losing or downsizing any hyperscaler relationship would materially impact growth.
The VMware integration, while progressing, has created friction with some enterprise customers pushing back on subscription pricing changes, risking churn in the software segment.
Semiconductor cyclicality has not disappeared — AI capex spending is currently in a hyper-growth phase, but any pullback in hyperscaler spending plans would directly impact Broadcom.
Rising competition in custom silicon from Marvell, in-house efforts by hyperscalers, and potential entry from NVIDIA into custom ASIC markets could erode Broadcom's dominance over time.
Geopolitical risk from U.S.-China trade tensions could disrupt supply chains or limit access to certain markets, adding uncertainty to the revenue outlook.
Broadcom occupies a rare position: it is one of few companies benefiting simultaneously from the AI hardware buildout and the enterprise software subscription wave. The bull case is straightforward — AI spending is accelerating, Broadcom's custom chip design wins are multiplying, and the software business provides margin stability that pure-play chip companies lack.
The key catalysts for the rest of 2026 are Q3 earnings (watch for whether the $16 billion AI semiconductor revenue guidance is met or exceeded), any new customer announcements in custom AI accelerators, and VMware retention metrics. Investors will also monitor whether hyperscaler AI capex guidance remains robust in their own earnings reports, as any signal of spending moderation would immediately pressure Broadcom's multiple.
The bear case centers on valuation and concentration: at ~60x earnings, Broadcom is priced for perfection, and its AI chip revenue is heavily concentrated among a handful of hyperscaler customers. The stock has already tripled from its 2023 lows, so much of the AI narrative is priced in — further upside requires continued execution at an extraordinary pace.
You can trade Broadcom on Bybit as a TradFi Perpetual Contract
To trade AVGO as a perpetual contract on Bybit TradFi, follow these simple steps:
After transferring USDT to your Unified Trading Account, choose AVGOUSDT from the available stocks under the Trade → TradFi menu.
Set the direction of the trade (Long or Short), the order quantity and other order parameters.
Initiate the trade by clicking on Long or Short.
Note: As of July 2026, AVGO is available as a TradFi Perpetual Contract (AVGOUSDT). Check the Bybit app for the latest availability, as new stock tickers and contract types are added regularly.
Broadcom's transformation into an AI infrastructure powerhouse is delivering extraordinary financial results, with revenue and profit growth rates that rival companies a fraction of its size. However, the stock's premium valuation means continued 100%+ AI revenue growth is already expected — not hoped for. Watch hyperscaler capex trends and Q3 AI semiconductor revenue delivery closely, since a beat sustains the momentum while any shortfall against the $16 billion guide would likely trigger a meaningful repricing.
To trade AVGO and other tech stocks, explore Bybit TradFi now.
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