Dear Friend,

Watch what the institutions are doing, not what they're saying.

Bank of America increased its stake in one small gold company by 139%.

Jane Street, one of the most sophisticated trading firms alive, by 159%.

Millennium by 122%.

And one value fund, Kopernik Global, made it their single largest holding. They own roughly 8% of the entire company.

The company doesn't even mine. It owns the rights to an 88 million ounce deposit, one of the largest on earth, with government-built roads and power already running to the property and permits that never expire.

Market cap: about $4 billion. Value of the metal in the ground at today's prices: hundreds of billions.

The institutions did this math quietly, over months.

You get to do it this afternoon.

Name, ticker and the full file here >>

"The Buck Stops Here,"

Kelly Maguire
Behind the Markets

The Path to $230 Billion: Broadcom Outlines the Next Phase of Its AI Growth Story

Reported by Leo Miller. Article Published: 9/3/2026.

Broadcom's (NASDAQ: AVGO) latest earnings report was among the most revealing the company has posted in recent quarters.

Another quarter of explosive AI sales growth stood out, but the quarter itself was far from the biggest story.

Management also provided key statistics and insights that give investors a much clearer understanding of the dramatic growth ahead.

The most important takeaway came later, when management outlined how much AI semiconductor demand it believes the company can serve over the next two fiscal years.

Broadcom Beats, But Next Quarter Guidance Falls Short

Broadcom released its financial results approximately an hour before its earnings call began. The headline numbers alone elicited a negative market reaction, with Broadcom shares falling as much as 5% in after-hours trading.

Broadcom posted sales of $29.6 billion, an 86% increase year over year. This slightly exceeded analyst estimates of $29.43 billion. The company’s earnings per share came in at $3.32, a 96% year-over-year increase, beating estimates of $3.22.

The likely cause of Broadcom’s decline after releasing its report was its guidance for the next quarter. Broadcom said it expects to generate sales of $34.8 billion, slightly below estimates of $35 billion.

Still, Broadcom solidly surpassed its own guidance for AI semiconductor sales of $16 billion. The company generated segment revenue of $16.7 billion, up 221% year over year. Next quarter, the company expects even more astonishing growth, guiding for $21.7 billion in sales, or a 236% year-over-year increase. Considering these factors, Broadcom raised its full-year AI semiconductor sales guidance to $58 billion from $56 billion. However, this figure still pales in comparison with what Broadcom expects in the years ahead.

Broadcom Provides Long-Awaited AI Semiconductor Sales Guidance

The tide began to turn as CEO Hock Tan gave his presentation. Management provided investors with the clarity they sought, offering concrete AI guidance not only for fiscal year 2027 (FY2027) but also for FY2028.

In FY2027, the company said it had secured enough supply to generate $115 billion in annual AI semiconductor revenue. This figure implies a near doubling of its AI semiconductor revenue and represents a notable increase from the company’s previous guidance of “more than $100 billion.”

Importantly, Tan said directly that Broadcom’s AI demand exceeds what this outlook implies, meaning that supply is limiting growth. In this context, it makes sense why Broadcom did not previously raise its AI semiconductor guidance. The company was likely unsure how much supply of key components it would be able to secure and, consequently, how many chips it could deliver to customers. One of the most likely supply constraints Broadcom is facing is high-bandwidth memory (HBM), which remains in tight supply.

The company said it will work to secure more supply, implying upside to its forecast if it succeeds. Meanwhile, Broadcom expects AI semiconductor sales to double again in FY2028, reaching $230 billion. This figure alone, excluding Broadcom’s non-AI semiconductor and software businesses, is 3.6 times as high as the company’s total revenue in fiscal 2025.

These comments quickly shifted the market’s interpretation of Broadcom’s results. Within minutes, the stock moved from down 3% to up 3%.

Frontier Labs Set to Supplant Alphabet as Broadcom’s Top AI Customer

Broadcom shed considerable light on its relationships with six XPU customers, providing several important statements on this front. First, the company noted that its engagement with Alphabet (NASDAQ: GOOGL) has “never been stronger.” This came even as the company specifically said MediaTek (OTCMKTS: MDTKF) was developing Alphabet’s Tensor Processing Unit (TPU) v8t, substantiating recent rumors.

On the other hand, Broadcom is responsible for the TPU v8i. The v8i is the next-generation, inference-specific variant of the TPU v8. This is particularly positive, as analysts expect inference workloads to increasingly grow their share of AI workloads relative to training workloads. Overall, Broadcom said it intends to “deliver multi tens of billions of dollars of TPUs annually” to Alphabet. These comments somewhat mitigate concerns that Broadcom is losing share within Alphabet’s TPU program.

Additionally, even if the company is losing share at Alphabet, the negative impact is likely to lessen over the coming years. Broadcom noted that Anthropic is on track to become its largest XPU customer, while OpenAI is on track to become its second-largest XPU customer. This would presumably knock Alphabet down to its third-largest customer over time, after it held the top spot for years. In turn, Broadcom should be less reliant on maintaining a massive share of Alphabet’s TPU program.

Broadcom’s AI Growth Story Is Just Getting Started

All in all, Broadcom shares were down slightly at the conclusion of after-hours trading. The stock likely would have received a meaningful boost if its FY2027 AI semiconductor guidance had been higher, as the figure was somewhat underwhelming. However, supply constraints provide a reasonable explanation for why Broadcom chose the number it did.

Nonetheless, Broadcom continues to forecast massive AI growth over multiple years, with $230 billion in AI chip sales expected in FY2028. This supports a healthy outlook for the stock.