Broadcom's AI Momentum: Analysts Bullish Ahead of Q2 Earnings

What Analysts Think of Broadcom Stock Ahead of Earnings

Most analysts tracked by Visible Alpha have a "buy" or equivalent rating, but their consensus price target suggests they don't see big gains for the stock. Broadcom (AVGO) is scheduled to report fiscal second-quarter results after the closing bell Thursday, with Wall Street expecting growing revenue and profits fueled by demand for AI chips. Analysts on average expect Broadcom to report revenue of $15.02 billion, up 20% year-over-year, and adjusted net income of $7.8 billion, up from $5.39 billion a year ago. AI revenue is expected to climb 42% year-over-year and 7% sequentially to $4.42 billion. Oppenheimer analysts called Broadcom the "No. 2 AI franchise after NVDA," in a note to clients Thursday, raising their price target to $265 from $225. Broadcom's "core franchises in networking, wireless, broadband, server/storage, and software support sustainable growth," the analysts said. "We remain long-term buyers." Of the 14 analysts tracked by Visible Alpha, 13 have a "buy" or equivalent rating for Broadcom stock, with one "hold." However, their consensus price target near $252 would suggest just 1% upside from Monday's close. After Nvidia's (NVDA) strong sales report last week, Morgan Stanley analysts said they "also are positive on [Broadcom] in the AI space, but we are hard pressed to generate additional enthusiasm."

JPMorgan Sees Upside In Broadcom Ahead Of Earnings: Q3 Revenue Could Top $16 Billion On AI Strength - Broadcom (NASDAQ:AVGO)

Broadcom Inc AVGO is scheduled to report its fiscal second-quarter results on Thursday, June 5. The company is likely to report its quarterly results in line with slightly higher than consensus estimates, according to JPMorgan. The Broadcom Analyst: Analyst Harlan Sur maintained an Overweight rating and price target of $250. The Broadcom Thesis: The company's healthy results are likely to be driven by continued strong demand for its AI products, stabilization in the non-AI semi business and the unlocking of revenue synergy from the VMware VMW acquisition, Sur said in the note. Check out other analyst stock ratings. Backed by a higher revenue base set in the fiscal second quarter, Broadcom is likely to guide to third-quarter revenue closer to $16.1 billion, above the current Street estimates and representing 5%-7% sequential growth, he added. Broadcom's revenue growth is likely to be led by AI demand strength, with AI revenues exceeding $5 billion, higher than consensus of $4.8 billion, the analyst stated. "Broadcom remains our overall top pick in our semiconductor coverage given their exposure to AI infrastructure spending trends combined with their diversified end market exposure and best-in-class gross, operation and free cash flow margins," he further wrote. AVGO Price Action: Shares of Broadcom had risen by 2.25% to $254.30 at the time of publication on Tuesday. Read More: * Broadcom Shares Rise On New AI Tools To Help Businesses Cut Cloud Costs Photo: Shutterstock AVGOBroadcom Inc$254.372.27%Stock Score Locked: Edge Members Only Benzinga Rankings give you vital metrics on any stock - anytime. Unlock RankingsEdge RankingsMomentum95.79Growth38.74Quality80.92Value8.65Price TrendShortMediumLongOverviewMarket News and Data brought to you by Benzinga APIs

JPMorgan maintains overweight rating on Broadcom stock ahead of earnings By Investing.com

On Tuesday, JPMorgan (NYSE:JPM) analysts reiterated an Overweight rating and maintained a $250.00 price target for Broadcom Limited (NASDAQ:AVGO), which currently trades near its 52-week high. According to InvestingPro data, the company has received a "GREAT" financial health score, though current analysis suggests the stock is trading above its Fair Value. Broadcom's demand profile for its artificial intelligence products, including custom ASICs and networking solutions, remains robust. The analysts also noted stabilization in Broadcom's non-AI semiconductor business, which includes sectors like enterprise, server/storage, broadband, and wireless. With impressive gross profit margins of 76.26% and revenue growth of 40.3% over the last twelve months, the company has demonstrated strong operational execution. Additionally, they highlighted ongoing revenue synergy from VMware as a positive factor. The forecast for Broadcom's April quarter revenue, earnings, and free cash flow is expected to meet or slightly exceed both JPMorgan's and consensus expectations. The analysts predict a 5-7% quarter-over-quarter revenue growth for the upcoming July quarter, driven by strong AI demand. Their revenue estimate for the July quarter stands at $16.1 billion, which is above the consensus estimate. InvestingPro subscribers can access 20+ additional key insights about Broadcom, including detailed valuation metrics and growth indicators in the comprehensive Pro Research Report. Broadcom's AI-related revenues are estimated to exceed $5 billion, surpassing the consensus estimate of $4.8 billion. This growth is attributed to the increasing demand for AI solutions, which is expected to contribute significantly to the company's financial performance. With a market capitalization of $1.19 trillion and analyst consensus remaining strongly bullish, Broadcom continues to strengthen its position as a prominent player in the semiconductor industry. In other recent news, Broadcom has made headlines with the release of its Tomahawk 6 switch series, achieving a remarkable 102.4 terabits per second of switching capacity on a single chip. This advancement is designed to support large-scale AI clusters, highlighting Broadcom's focus on AI infrastructure. Additionally, several analyst firms have shown confidence in Broadcom's prospects. Citi has raised its price target to $276, citing strong performance in the AI segment, which is expected to account for 30% of fiscal 2025 sales. Melius has maintained its Buy rating with a price target of $283, emphasizing Broadcom's strength in the networking division. Redburn-Atlantic has initiated coverage with a Buy rating and a $301 price target, highlighting Broadcom's strategic acquisition of VMware. Mizuho Securities has also increased its price target to $300, maintaining an Outperform rating and noting Broadcom's growth potential in AI Custom Silicon. These developments reflect Broadcom's significant position in the technology sector, particularly in AI and networking.