Is Broadcom Stock a Buy After Q2 Revenue Reached $22.2 Billion and Opex Held Flat?

Key Takeaways for Broadcom Stock

• Broadcom reported record Q2 revenue of $22.2 billion, up 48% year over year.
• Operating income reached $14.9 billion with an operating margin of 49%, up from 38% a year prior.
• AI semiconductor revenue hit $10.8 billion, representing 49% of total Q2 revenue.
• TIKR’s model values Broadcom stock at approximately $1,094 by October 2030, implying around 178% total return from the current price.

If Broadcom’s operating leverage story is playing out this fast, the income statement is the place to start. Dig into AVGO’s full financial history on TIKR for free →

Broadcom Just Delivered $22.2 Billion in Q2 Revenue as AI Demand Outpaces Shipments

Broadcom (AVGO) reported record fiscal Q2 revenue of $22.2 billion in June 2026, up 48% year over year, driven by an AI semiconductor segment growing faster than any other business line in its history.

Broadcom designs and supplies custom AI accelerators called XPUs (application-specific integrated circuits built for a single workload type) and networking chips that connect those accelerators into large compute clusters.

AI semiconductor revenue hit $10.8 billion in Q2, accounting for nearly half of total company revenue in a single quarter.

CEO Hock Tan said in Q2 earnings call that the demand is nowhere near slowing: “Bookings for AI semiconductors were over $30 billion against the $10.8 billion we shipped.”

The company has locked in long-term agreements with Google, Anthropic, OpenAI, and Meta, covering multiple generations of custom silicon and networking infrastructure stretching into 2028 and beyond.

For Q3, Broadcom guided AI semiconductor revenue to $16 billion, which would represent more than 200% year-over-year growth in that segment alone.

Non-AI semiconductor revenue of $4.2 billion also inflected, rising 6% year over year, with bookings exceeding $6 billion, signaling a cyclical recovery in that segment.

Infrastructure software, anchored by VMware’s cloud computing platform VCF 9.1, contributed $7.2 billion in Q2 and is guided to $8.9 billion in Q3.

The transcript tells you what happened. The income statement tells you whether it can hold. See Broadcom’s operating leverage trajectory on TIKR for free →

AVGO’s Operating Margin Just Hit 49% While Opex Held Near Flat

Broadcom’s operating income reached $14.9 billion in the most recent quarter, the highest figure in the company’s history.

Operating margins expanded to 49%, up sharply from 38% in the same period a year earlier, representing one of the largest year-over-year margin gains in recent quarters.

Total operating expenses of $6.02 billion remained essentially flat versus $5.92 billion in the prior comparable quarter, even as revenue scaled by nearly half.

Gross profit grew to $16.89 billion, with gross margins holding at 76%, consistent with the prior year’s level despite a rising proportion of semiconductor revenue, which carries structurally lower margins than the software segment.

R&D spending held near $3 billion, unchanged from recent quarters, confirming that Broadcom is not sacrificing cost discipline to fuel growth.

The gap between gross margin and operating margin has narrowed materially: at 49% operating margins versus 76% gross margins, the company is converting roughly two-thirds of gross profit into operating income, a ratio that improves when opex stays contained at this scale.

Broadcom Leads MRVL, QCOM, and Trails Only NVDA on Operating Margins in the Most Recent Quarter

Broadcom’s operating margin reached 49% in the most recent quarter, placing it ahead of Qualcomm (QCOM) at 22%, Marvell Technology (MRVL) at 14%, and trailing only NVIDIA (NVDA) at 66%.

NVIDIA holds the margin lead, but Broadcom’s trajectory is the more striking story: AVGO expanded from 32% to 49% over eight quarters while Qualcomm oscillated in a narrow band and Marvell spent much of the same period in the low teens.

Marvell’s 14% operating margin against Broadcom’s 49% reflects the cost of a business still investing heavily in its AI networking ramp without the software revenue layer that insulates Broadcom’s opex structure.

Qualcomm’s 22% margin sits roughly where Broadcom stood three years ago, before VMware integration and AI semiconductor scale compressed the cost ratio at the consolidated level.

NVIDIA’s 66% operating margin remains the peer benchmark, but it is the product of a GPU monopoly in training workloads — a structurally different margin engine than the custom silicon and recurring software model Broadcom operates.

Is Broadcom Stock Undervalued? TIKR’s $1,094 Target Says the Margin Story Has Room to Run

TIKR’s model values Broadcom at approximately $1,094 by October 2030, implying around 178% total return from the current price of $393, or roughly 26% per year.

The operating leverage already established in the income statement is the mechanism the target depends on most directly.

Revenue is scaling faster than opex, and if that ratio holds as AI semiconductor shipments double in the second half of fiscal 2026 and continue into 2027, operating income has structural room to compound at a rate that justifies the target.

The condition the model requires is not speculative: it is the same cost discipline the income statement has already demonstrated across several consecutive quarters.

If TIKR’s $1,094 target has your attention, the underlying model is worth walking through yourself. Explore Broadcom’s valuation model on TIKR for free →

Should You Invest in Broadcom Inc.?

The only way to really know is to look at the numbers yourself. TIKR gives you free access to the same institutional-quality financial data that professional analysts use to answer exactly that question.

Pull up Broadcom Inc. stock and you’ll see years of historical financials, what Wall Street analysts expect for revenue and earnings in the quarters ahead, how valuation multiples have moved over time, and whether price targets are trending up or down.

You can build a free watchlist to track Broadcom Inc. alongside every other stock on your radar. No credit card required. Just the data you need to decide for yourself.

Access Professional Tools to Analyze AVGO stock on TIKR for Free →

Does Broadcom Pay a Dividend?

Broadcom pays a quarterly cash dividend of $0.65 per share, and the board authorized a $10 billion share repurchase program through December 2026, providing two separate return-of-capital mechanisms alongside its growth.