Broadcom Inc (AVGO  ) is scheduled to report its fiscal third-quarter results on Sept. 2. Recent channel checks indicate that investor concerns around the company's competitive position at Alphabet Inc (GOOGL  ) (GOOG  ) seem to be "overstated," according to JPMorgan.

  • The Broadcom Analyst: Analyst Harlan Sur maintained an Overweight rating and price target of $580.
  • The Broadcom Thesis: The stock has lagged the broader semiconductor group year to date, having risen only by 7% versus a 69% gain in the index, Sur said in the note.
He added that much of the underperformance in Broadcom's shares stem from:

  • Concerns around potential share loss at Google longer-term.
  • Management having reiterated their AI revenue guidance for fiscal 2027 to exceed $100 billion.
Channel checks over the last 90 days indicate that the recent partnerships with Alphabet and Marvell Technology Inc (MRVL  ), as well as noise around potential suppliers, "are more reflective of GOOGL bringing on more partners to support its internal COT team and to support TPU-attach opportunities," the analyst wrote.

No other company is likely to displace Broadcom's position as Alphabet's core TPU partner, given the terms of the agreement signed in early April, in which Alphabet committed to annually increasing TPU-related purchases at Broadcom and "anchored AVGO as the volume partner for the next four generations of TPU SKUs," he further stated.

Boss said he expects Broadcom to report "solid" results for the July quarter and announce better-than-expected guidance for the October quarter, with fiscal 2026 AI revenues of more than $56 billion.

AI revenues in fiscal 2027 are likely to be above management's current guidance of over $100 billion, and could surpass $130 billion, considering potential industry supply constraints "as customer commitments, backlog and order momentum continue to build across ASIC/XPU and AI networking," the analyst added.

AVGO Price Action: Shares of Broadcom are up slightly at 0.41% to $370.22 at the time of publication on Monday.