5 Reasons to Buy Broadcom Stock Before Its Sept. 2 Earnings
Broadcom looks like both a short-term and long-term buy.
Overview
After a hot start to 2026, Broadcom (NASDAQ: AVGO) shares have lost significant steam. However, its Sept. 2 earnings report after the bell on Wednesday could prove to be a major catalyst. Let's look at five reasons to buy this AI stock ahead of earnings and for the long term.
Broadcom's biggest revenue driver is the custom AI chips it helped Alphabet develop, called Tensor Processing Units (TPUs). Alphabet is aggressively spending on AI infrastructure, raising its capital expenditure (capex) budget to between $195 billion and $205 billion, and indicating it will significantly increase it next year.
Details
In addition, Alphabet has also begun to sell TPUs to customers outside of Google Cloud. Anthropic has placed $21 billion worth of TPU orders with Broadcom, and the three companies have signed an agreement for future TPU commitments. Broadcom delivers the chips and books the revenue, while Alphabet collects a licensing fee from Broadcom.
Source
Originally published at www.fool.com.