Broadcom (Nasdaq: AVGO) enters its Q2 FY2024 earnings release as one of the most closely watched semiconductor and infrastructure software plays, sitting squarely at the intersection of two defining technology narratives: hyperscale AI infrastructure deployment and large-scale software consolidation. Expectations are high across the board, and the stock has reflected that enthusiasm — surging over 30% in the past month to all-time highs, with investors pricing in both generative AI upside and a smooth VMware integration path.
Analysts are modeling $12.04B in revenue (+37.6% YoY) and $10.84 in adjusted EPS, with roughly $2.3B expected from VMware in its first full quarter post-acquisition. The remainder of the growth is expected to come from AI-enabling components — especially Broadcom’s switch ASICs, custom silicon, and Ethernet fabric interconnects, which are widely deployed by hyperscale customers like Google, Microsoft, and Amazon. The company previously disclosed that GenAI-related sales were running at a $1B quarterly pace — and any update on that figure will be a core focus.
Broadcom’s results will serve as a high-stakes litmus test for enterprise AI infrastructure demand, especially given recent mixed signals from peers. Nvidia has flagged broad-based hyperscaler spend, while Marvell noted pushouts. Broadcom’s exposure is deeper in networking, and the expectation is for that segment to grow over 50% YoY, barring any cloud digestion pause.
Just as important is the VMware narrative. Management previously guided to 60% EBITDA margins on a combined basis and expressed confidence that early cost synergies would materialize faster than expected. But as VMware customer contracts turn over, the Street wants proof that Broadcom can retain revenue while simplifying the product portfolio. Any sign of subscription churn or integration friction could undercut the broader software platform thesis.
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