Broadcom (AVGO) was the last but surely not the least semiconductor giant among multinational tech megacaps to report this quarterly earnings season. And neither its numbers nor its future projections did not disappoint investing crowds.

The company broke its all-time record for quarterly revenue, showing $15 billion exactly against the previous record of $14.92 billion and the consensus expectations of the expert pool of $14.95 billion. Broadcom also fell only 1.25% short of matching its March 6 quarterly earnings all-time record of $1.60 per share, as it came out at $1.58 this time, but beat the market's consensus estimate of $1.57. So, it's all right in this field, too. The achievement has been made "on continued momentum in AI semiconductor solutions and VMware", said Hock Tan, president and CEO of Broadcom. VMware provides virtualization and cloud computing software and services, acquired by Broadcom in 2023. Q2 AI revenue grew 46% YoY to over $4.4 billion, driven by robust demand for AI networking". Various chip-related solutions, which is Broadcom's core business, added 56% to $8.41 billion, and infrastructure software's segment gained 44%% to $6.6 billion.

Future projections are no less impressive than current and past growth paces. As CEOs shared their inner forecast for Q3 revenue of $15.8 billion, compared with average market estimates of $15.77 billion. This would be a $0.8 billion (+5.3%) of additional sales for the next three months. That's a lot for a global developer and distributor of chip solutions with a market cap of over a trillion dollars. "We expect growth in AI semiconductor revenue to accelerate to $5.1 billion in Q3, delivering ten consecutive quarters of growth, as our hyperscale partners continue to invest," Broadcom CEO Hock Tan confirmed during the conference call on the night of June 5-6.

Broadcom's share price was forced to retreat about 5% in the after-hours due to the overall S&P 500 pullback to 5,925 on profit-taking at the time, which looked pretty normal after a 17% rally in just the last two weeks to an all-time high near $265 and a cumulative 36% gain in the month since May 6, when the price was below $200. Our price target is above $300 for the rest of the year, so any temporary lows could be used for active repurchases, in our opinion.

Broadcom remains the key player in the AI hardware ecosystem, being a critical part of designing custom processors, highly specialized integrated circuits for cloud computing companies, including Microsoft's partner OpenAI and Google. Broadcom's earnings is just another brick in Wall Street's bullish tower, which touched the 6,000 landmark for its broad S&P 500 indicator late this week and then retreated slightly for a while, largely driven down for a while by Tesla's local correction. Broadcom's further progress is destined to contribute to the treasury of other tech megacaps' growth with a visible cumulative effect for the Nasdaq 100 (now peaked at nearly 22,000 points) and the major segment's XLK ETF (now peaked at $239.5) in nearest months.