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Caution Builds on Broadcom Before Earnings as Cramer Urges Patience, RBC Cuts Target

Investor caution grows ahead of Tuesday’s results following a high‑profile call to wait for a better entry.

Overview

  • Jim Cramer called Broadcom "too hard to own right now," pointing to perceived software weakness tied to AI concerns and saying he hopes Hock Tan pursues a buyback.
  • Broadcom is scheduled to report its Q1 fiscal 2026 results after the close on March 4.
  • RBC’s Srini Pajjuri now models Q1 revenue and EPS of $19.1 billion and $2.00, Q2 of $20.4 billion and $2.16, sees results slightly above consensus, and lowered his price target to $340 with a sector perform rating.
  • Pajjuri highlighted customer concentration questions, citing Anthropic’s up to $21 billion TPU rack orders that ramp in the second half of 2026 with uncertain sustainability.
  • Broadcom said it has begun shipping a 2nm custom compute SoC on its 3.5D XDSiP platform and expects broader XPU shipments using the improved platform in the second half of 2026.