Broadcom (AVGO) Stock: Earnings Day Arrives With AI Chip Orders Fueling Investor Optimism

TLDR

• Broadcom posts fiscal Q4 earnings December 11 after market close with Wall Street forecasting $17.5 billion revenue and $1.87 EPS
• Shares have rocketed 76% in 2025, tripling the Nasdaq Composite’s 23% return during the same period
• The company landed $10 billion in AI chip orders from a new customer, strengthening its fiscal 2026 revenue projections
• Wall Street analysts maintain Strong Buy ratings with an average price target of $436.33, suggesting 5.7% upside potential
• Options market anticipates a 7% stock movement in either direction following the earnings announcement

Broadcom releases its fiscal fourth-quarter earnings after today’s closing bell. Analysts expect the semiconductor company to report revenue of $17.5 billion and adjusted earnings per share of $1.87.

Broadcom Inc., AVGO

The consensus for the current quarter calls for revenue of $18.4 billion and earnings per share of $1.97. Broadcom has exceeded earnings expectations for 16 consecutive quarters.

Shares have jumped 76% year-to-date. The Nasdaq Composite gained just 23% during the same stretch.

The company operates across multiple semiconductor markets. Its chips power networking equipment, broadband systems, server storage, wireless devices, and industrial applications.

Broadcom dominates the high-end AI application-specific integrated circuit market. The company partners with major tech companies to design custom AI chips.

Wall Street Raises Price Targets on AI Growth

J.P. Morgan analyst Harlan Sur kept his Overweight rating and $400 price target on Sunday. He expects strong demand for Broadcom’s AI products to drive results above consensus estimates.

Morgan Stanley lifted its price target from $409 to $443 while maintaining a Buy rating. Analyst Joseph Moore projects Broadcom’s AI processor revenue will outpace Nvidia’s growth in 2026.

Moore credits this outlook to Nvidia’s ongoing supply constraints. Key Nvidia products will remain supply-limited throughout 2026, creating opportunities for competitors.

Bank of America analyst Vivek Arya bumped his price target to $460 from $400. He highlighted Google’s successful Gemini 3 AI model launch as proof of growing TPU adoption.

Google Partnership Strengthens Revenue Outlook

Google trained its Gemini 3 model entirely on TPUs. Broadcom serves as a key design partner for these processors.

Arya forecasts TPU production will climb from 2 million units in 2025 to more than 3 million in 2026. Production could reach 3.8 million units next year.

CEO Hock Tan announced in September that Broadcom secured $10 billion in AI orders from a new qualified customer. He said this will boost the fiscal 2026 AI revenue outlook.

Options traders are pricing in volatility after earnings. The at-the-money straddle indicates expectations for a 7% move in either direction.

Twenty-four analysts rate the stock a Buy, one rates it a Hold, and zero rate it a Sell. The average price target of $436.33 implies 5.7% upside from current levels.

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