Broadcom Set to Report Strong Quarterly Earnings amid Market Optimism

Broadcom Inc. (AVGO), with a market capitalization of $905 billion, specializes in designing, developing, and supplying a range of semiconductor devices. The company focuses on complex digital, mixed signal complementary metal oxide semiconductor-based devices, and analog III-V-based products globally. Founded in 1961 and based in Palo Alto, Broadcom operates in two key segments: Semiconductor Solutions and Infrastructure Software. AVGO is slated to report its Q2 earnings on Wednesday, June 11.

Prior to this earnings report, analysts anticipate that Broadcom will announce a profit of $1.34 per share, reflecting a 54% increase from the $0.87 per share reported in the same quarter last year. Notably, the company has surpassed analysts’ earnings estimates in each of the previous four quarters. Its recent EPS of $1.40 exceeded expectations by 10.2%, driven by growth in AI semiconductor solutions and infrastructure software.

For the current fiscal year, analysts project AVGO’s EPS to reach $5.69, a 53.4% increase from the $3.71 reported in fiscal 2024. Furthermore, earnings are expected to grow by 21.8% year-over-year, achieving $6.93 per share in fiscal 2026.

Over the past year, AVGO shares have risen 42.8%, significantly outpacing the S&P 500 Index’s gains of 8.7% and the Technology Select Sector SPDR Fund’s (XLK) returns of 4.2% during the same period.

On April 28, Broadcom’s stock saw a minor decline following reports that Huawei is preparing to test an AI processor that could replace some products from NVIDIA Corporation (NVDA). This news raised concerns among investors regarding U.S.-based chip producers.

Nevertheless, the consensus among analysts remains optimistic about AVGO stock. It carries an overall “Strong Buy” rating, with 28 out of 31 analysts recommending a “Strong Buy” and three suggesting a “Hold.” The average price target of $242.19 indicates a potential upside of 26.7% from current levels.

On the date of publication, Kritika Sarmah did not hold (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.

The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.