Is Broadcom (AVGO) Stock a Buy Ahead of Earnings?

TLDR

• Broadcom reports fiscal Q4 earnings after market close on December 11, with analysts expecting revenue of $17.5 billion and adjusted EPS of $1.87
• The stock has surged nearly 76% year-to-date, crushing the Nasdaq’s 23% gain over the same period
• CEO Hock Tan announced $10 billion in AI chip orders from a new customer in September, boosting the fiscal 2026 revenue outlook
• Morgan Stanley raised its price target to $443 and expects Broadcom’s AI processor revenue to grow faster than Nvidia’s in 2026
• Options traders are pricing in a 7% stock move in either direction following the earnings release

Broadcom will report its fiscal fourth-quarter earnings after the closing bell today. Wall Street expects the company to deliver revenue of $17.5 billion and adjusted earnings per share of $1.87.

Broadcom Inc., AVGO

For the current quarter, analysts project revenue of $18.4 billion and earnings per share of $1.97. The company has beaten earnings estimates for 16 straight quarters.

Broadcom shares have climbed nearly 76% in 2025. That performance crushes the Nasdaq Composite’s 23% gain over the same timeframe.

The semiconductor company competes across multiple chip categories. These include networking, broadband, server storage, wireless, and industrial applications.

Broadcom also leads in the market for high-end AI application-specific integrated circuits, known as AI ASICs. The company helps major tech firms design custom chips for artificial intelligence workloads.

Analysts Bullish on AI Chip Momentum

J.P. Morgan analyst Harlan Sur maintained his Overweight rating on Sunday. He kept his $400 price target intact and expects strong demand for Broadcom’s AI products to continue.

Sur believes the October quarter results will exceed both his estimates and consensus expectations. He specifically pointed to revenue, earnings, and free cash flow as likely beat categories.

Morgan Stanley recently raised its price target from $409 to $443 while keeping a Buy rating. Analyst Joseph Moore expects Broadcom to grow its AI processor revenues slightly faster than Nvidia in 2026.

Moore noted that Nvidia faces supply constraints that could benefit Broadcom. Many key Nvidia products will remain supply-limited through 2026, according to the firm.

Customers are particularly concerned about securing enough Nvidia hardware. The Vera Rubin chip remains in high demand, though Google’s TPU has emerged as a capable alternative.

Bank of America analyst Vivek Arya also raised his price target to $460 from $400. He maintained a Buy rating on the stock.

Google’s TPU Success Boosts Broadcom Outlook

Arya pointed to Google’s successful launch of its Gemini 3 AI model as a positive signal. The model was trained entirely on TPUs, demonstrating growing adoption of the technology.

Broadcom serves as a key design partner for TPU development. Arya expects TPU production to jump from 2 million units in 2025 to over 3 million in 2026.

Production could potentially reach 3.8 million units in 2026. This increase in TPU usage positions Broadcom to capture more AI hardware market share.

In September, CEO Hock Tan revealed the company secured $10 billion in AI orders from a new qualified customer. He said this would improve the AI revenue outlook for fiscal 2026.

Options traders are pricing in movement following the earnings report. The at-the-money straddle suggests expectations for a 7% move in either direction.

Wall Street maintains a Strong Buy consensus rating on Broadcom stock. The rating is based on 24 Buy ratings, one Hold, and zero Sell ratings assigned in the past three months.

The average price target sits at $436.33 per share. This implies 5.7% upside potential from current levels.

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