Crypto World

Broadcom (AVGO) Stock Climbs as AI Chip Sales More Than Double in First Quarter

Published

2 days ago

8 March 2026

NewsAdmin

Key Takeaways

First quarter revenue reached $19.3 billion, representing 29% annual growth and setting a company record
Artificial intelligence revenue more than doubled, climbing 106% to $8.4 billion and exceeding internal projections
Second quarter outlook calls for $22 billion in total revenue, including $14.8 billion from AI operations
Morgan Stanley upgraded its price objective to $470 from $462 while maintaining an Overweight stance
Wall Street analysts forecast potential AI revenue reaching $120 billion by fiscal year 2027

Shares of Broadcom (AVGO) finished March 5 trading at $322.77, marking a 4.8% gain following the chipmaker’s fiscal first quarter 2026 earnings release. The stock has experienced modest declines since that session and continues trading below its year-to-date starting point.

AVGO Stock Card
Broadcom Inc., AVGO

The company delivered quarterly revenue of $19.31 billion, surpassing Wall Street’s $19.18 billion projection and establishing a new high-water mark. Earnings per share on an adjusted basis reached $2.05, topping the Street’s $2.03 estimate.

The headline figure came from artificial intelligence operations — $8.4 billion in revenue representing 106% year-over-year expansion and exceeding the company’s own internal forecasts.

Custom AI accelerator chip revenue drove much of this performance, skyrocketing 140% from the prior-year period. Revenue from AI networking products increased 60%, with management indicating that networking growth should accelerate significantly in the current quarter thanks to Tomahawk Ethernet switching technology and SerDes product lines.

Adjusted EBITDA expanded 30% annually to $13.1 billion, translating to margins of 68% relative to revenue. Gross profit margins settled at 77%, down from 79.1% in the year-ago quarter but showing sequential stability.

Focus Shifts to Custom AI Chip Performance

Semiconductor solutions revenue climbed 52% year-over-year to $12.5 billion overall. Traditional non-AI chip revenue, by contrast, expanded just 4% — highlighting where the company’s growth engine truly resides.

Infrastructure software revenue increased modestly by 1% to $6.8 billion. Within that category, VMware-related revenue posted 13% growth.

During the earnings conference call, CEO Hock Tan pushed back against concerns that hyperscale AI developers might bypass chip partners like Broadcom by developing proprietary silicon. His counterargument was direct: “You need the best silicon design team around. You need cutting-edge SerDes, very advanced packaging. We’ve been doing this for more than 20 years. I would say we are by far way out there, and we will not see competition in customer-owned tooling for many years to come.”

CFO Kirsten Spears highlighted that the company distributed $10.9 billion to shareholders during the quarter — $3.1 billion through dividends and $7.8 billion via stock repurchases. Management also authorized an additional $10 billion buyback program extending through calendar year 2026.

Wall Street Analyst Lifts Valuation Target

Morgan Stanley’s Joseph Moore increased his valuation target on AVGO to $470 from a previous $462, reaffirming an Overweight recommendation. Moore characterized the quarterly performance as “strong,” citing AI-fueled upside momentum and enhanced long-term revenue visibility.

He observed that margin worries have diminished, networking segments exceeded expectations, and the fiscal 2027 AI opportunity remains attractive as custom accelerator programs continue expanding.

For the current quarter, Broadcom projected approximately $22 billion in revenue, suggesting 47% year-over-year expansion. AI segment revenue for the second quarter is anticipated to reach $14.8 billion — reflecting 76% annual growth.

Management has communicated to the analyst community that its five primary custom AI chip clients are advancing according to plan, and that the company can generate over $100 billion in AI chip revenue during fiscal 2027 alone. Morgan Stanley’s team places that estimate even higher at approximately $120 billion, with potential for further upward adjustments.

AVGO shares currently trade at approximately 32 times fiscal 2026 earnings projections and roughly 22.5 times the fiscal 2027 consensus estimate.

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Crypto World

Hyperliquid Will Hit $150 by Mid 2026, Predicts BitMEX’s Arthur Hayes

Published

6 minutes ago

11 March 2026

NewsAdmin

Hyperliquid Will Hit $150 by Mid 2026, Predicts BitMEX's Arthur Hayes

Hyperliquid (HYPE) may hit $150 by August, according to BitMEX co-founder Arthur Hayes.

Key takeaways:

CEX volume rotation and demand for macro-linked markets, including oil, are boosting HYPE’s bull case.
A cup-and-handle setup is hinting at an initial breakout toward $50.

CEX to DEX rotation can grow HYPE prices fivefold

In a post published on Monday, Hayes said that if Hyperliquid keeps pulling derivatives volume away from centralized exchanges (CEX) and expands its product suite, HYPE could climb roughly fivefold from around $30.

To make it happen, Hyperliquid’s 30-day annualized revenue run rate must rise to $1.40 billion by August from $843 million in March.

*CEX to DEX rotation (black line) chart. Source: Defi Llama*

Such growth is achievable if the platform captures another 3.96% share of derivatives volume from centralized exchanges after already absorbing roughly 6% as of March.

Hyperliquid uses about 97% of its revenue to buy HYPE tokens from the open market. Therefore, most of the money the platform makes is used to buy its own token, which can support the price if trading activity keeps rising.

That structure, Hayes said, boosts HYPE’s odds of rising toward $150.

Tokenized oil boom: Hyperliquid’s bull case

Hayes’s bullish call came as the US–Iran war turned oil into Hyperliquid’s top-traded assets.

On Tuesday, CL-USDC, its crude oil-linked perpetual pair, reached about $1.29 billion in 24-hour volume, overtaking ETH-USDC at roughly $1.24 billion, showing traders are increasingly using the platform to bet on traditional assets, not just crypto.

*Top-10 traded pairs on Hyperliquid. Source: Hyperliquid*

The trend also supports Hayes’s broader HIP-3 thesis. HIP-3 lets users launch perpetual markets permissionlessly by staking HYPE, and Hayes said newer listings tied to oil, gold, silver and major US indexes are already gaining traction.

He argued that HIP-3 now contributes nearly 10% of Hyperliquid’s revenue and could grow revenue by 160% in the coming months if the DEX keeps offering macro assets like gold and oil.

*HIP-3 monthly revenue statistics. Source: Maelstrom*

Last year, Maelstrom, a family office fund tied to Arthur Hayes, predicted declines in HYPE prices due to $11.90 billion in token unlocks. Since then, the Hyperliquid token has fallen by roughly 40%.

*HYPE/USDT daily chart. Source:* *TradingView*

Still, Hayes has also made several high-profile calls that did not play out.

That includes Bitcoin targets of $250,000 by the end of 2025 and $200,000 by March 2026, as well as a January 2025 call for TRUMP memecoin to hit a $100 billion market cap by inauguration.

HYPE technicals hint at initial breakout toward $50

From a technical perspective, HYPE may rally toward $50 in March or by April, based on a cup-and-handle pattern.

A cup-and-handle forms after a rounded recovery and a brief consolidation. It confirms when price breaks above the neckline resistance, with upside typically measured by the pattern’s maximum height.

*HYPE/USD daily price chart. Source: TradingView*

Applying the technical rule to HYPE gives a measured upside target of around $50 if the price breaks decisively above the $35.50 neckline resistance. If the pattern plays out, it will result in gains of more than 40% from current levels.

Conversely, a pullback from $35.50 could push the HYPE price initially toward $30, a level aligning with the 0.236 Fibonacci retracement line and the 50-day exponential moving average (50-day EMA, the red wave).