Broadcom Stock Poised for Parabolic Rally After Sept. 2 Earnings Report

Broadcom's upcoming earnings report may be the catalyst for a significant stock price increase. The chip designer is expected to deliver stronger-than-expected results and guidance, with revenue projected at $29.4 billion in fiscal Q3, an 84% spike from the year-ago period.

The growth of the optical networking market, where demand significantly outpaces supply, could be a major contributor to Broadcom's success. According to Goldman Sachs, this market is expected to jump from $15 billion in 2026 to a stunning $154 billion in 2028. Broadcom sells multiple optical networking components, including fast-growing co-packaged optics (CPO) products.

Broadcom's custom AI processor sales are also expected to increase, with the company anticipating $56 billion in AI chip revenue in 2026. The growing demand for custom AI processors could further boost Broadcom's earnings and guidance.