Broadcom Leads 7 Analyst Picks For Triple-Digit EPS Growth
0h ago|4 min readStandard
Fazen Markets Editorial Desk
Collective editorial team · methodology
broadcomearnings-growth
Fazen Markets Editorial Desk
Collective editorial team · methodology
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A recent analysis highlights seven stocks, including Broadcom, projected for triple-digit earnings per share growth in the coming year. Broadcom is slated to report quarterly results on 5 June, with Wall Street anticipating a 108% surge in earnings. This concentrated group of high-growth names underscores a strategic focus on companies with tangible AI and infrastructure catalysts, diverging from broader market momentum.
The search for earnings growth has intensified as market leadership narrows. The S&P 500's earnings growth is forecast at a more modest 9% for the current fiscal year, creating a premium for companies that can significantly exceed that benchmark. This list of seven stocks represents a high-conviction subset where analysts see a clear path to exponential profit expansion, largely driven by end-market demand for artificial intelligence hardware and software.
The current macroeconomic backdrop of stabilized interest rates has shifted investor focus from multiple expansion to fundamental earnings power. Companies demonstrating pricing power and scalable business models are being rewarded. The selection criteria for these analyst favorites typically include strong order backlogs, proprietary technology, and exposure to secular growth trends less susceptible to economic cycles.
Broadcom's upcoming report acts as a critical test for this thesis. As a key supplier of networking chips and custom silicon for AI data centers, its performance is a direct read-through on enterprise and hyperscaler capital expenditure. A strong result would validate the growth projections for the entire cohort, while a miss could trigger a reassessment of AI-related earnings assumptions.
The seven stocks identified by analysts are projected for earnings growth ranging from 107% to over 200%. Broadcom leads the group with a consensus EPS forecast of $11.07 for the quarter ending 5 June, a 108% increase from the $5.32 reported in the year-ago period. Revenue is expected to climb 37% to $12.3 billion, fueled by its acquisition of VMware and AI product cycles.
| Metric | Broadcom (Current Quarter Forecast) | Year-Ago Quarter | Change |
|---|---|---|---|
| EPS | $11.07 | $5.32 | +108% |
| Revenue | $12.3B | $8.9B | +37% |
This growth significantly outpaces the technology sector benchmark. The Technology Select Sector SPDR Fund (XLK) has an aggregate earnings growth projection of approximately 16% for the same period. Other stocks on the list, including several smaller-cap semiconductor equipment and software firms, show even higher percentage gains, albeit from a smaller baseline. The median earnings growth estimate for the group exceeds 125%.
The concentration of analyst favorites in semiconductor and infrastructure software companies indicates a rotation toward the foundational layers of the AI ecosystem. This benefits suppliers like Broadcom, NVIDIA, and Arista Networks more directly than application-layer software firms. Second-order effects could include increased capital expenditure for cloud providers, positively impacting data center REITs like Digital Realty Trust and Equinix.
A key risk is the high level of expectation embedded in these valuations. The price-to-earnings growth ratios for several names on the list are stretched, leaving minimal room for operational missteps or a slowdown in AI investment cycles. Any indication of order push-outs or inventory digestion from major customers like Microsoft Azure or Amazon AWS would likely trigger significant multiple compression.
Institutional positioning data shows hedge funds and active managers increasing exposure to these high-growth names at the expense of more defensive sectors. Flow tracking indicates net buying in semiconductor ETFs and individual stocks ahead of the earnings season. The trade is crowded, suggesting that positive surprises may be met with profit-taking, while negative surprises could provoke amplified selling pressure.
The primary immediate catalyst is Broadcom's earnings report scheduled for 5 June, after the market closes. Investors will scrutinize guidance for the fiscal fourth quarter, particularly commentary on AI-related revenue durability. Key levels to monitor for Broadcom stock include technical support near the 50-day moving average, currently around $1,550, and resistance near its all-time high of $1,750.
Subsequent catalysts include the Federal Open Market Committee meeting on 17 July, which will provide clarity on the interest rate trajectory and its impact on growth stock valuations. The next major earnings season for the broader tech sector begins in mid-July, offering a comparative dataset to assess if the growth of these seven stocks is an outlier or part of a broader trend.
Market participants should watch for changes in analyst ratings and price targets following Broadcom's report. A wave of upward revisions for the other six names would signal strengthening conviction, while downgrades would indicate the growth narrative is faltering. The relative performance of the iShares Semiconductor ETF (SOXX) against the Nasdaq-100 will be a key indicator of sector leadership.
The technology and communication services sectors currently hold the highest aggregate earnings growth projections for 2026, with estimates near 15-18%. However, this analysis identifies a subset of stocks within these sectors, primarily in semiconductors and infrastructure software, where growth is projected to exceed 100%. This highlights a significant performance dispersion, where a small group of companies is expected to drive a disproportionate share of overall sector earnings expansion.
Broadcom's forward price-to-earnings ratio has expanded to approximately 28x, above its 5-year historical average of around 20x. This premium valuation reflects the market's anticipation of accelerated earnings growth driven by its AI business. The current P/E is also higher than the semiconductor industry average of 25x, indicating that investors are pricing in a successful execution of its growth strategy and the full integration of VMware.
The most significant risk is a macroeconomic slowdown that causes enterprise customers and cloud providers to delay or reduce capital expenditure on AI infrastructure. These growth projections assume continued strong demand for data center capacity and networking gear. A contraction in IT spending or a shift in AI investment priorities toward software optimization over hardware procurement would directly impact the revenue assumptions underpinning these lofty earnings forecasts.
Broadcom's earnings report will test the viability of triple-digit growth projections for a concentrated group of analyst-favored stocks.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. CFD trading carries high risk of capital loss.
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