Broadcom Stock (AVGO) Is About to Report Q2 Earnings Tomorrow. Here Is What to Expect

Broadcom (AVGO), a key player in semiconductor and infrastructure software solutions, is scheduled to announce its results for the second quarter of Fiscal 2025 after the market closes tomorrow, June 5. AVGO stock has rallied over 93% year-to-date, fueled by strong demand for its custom AI chips. It gained further steam in the latest session, with shares hitting a record high after the company announced it had begun shipping its next-generation Tomahawk 6 switch series chips.

Wall Street analysts expect the company to report earnings of $1.57 per share, representing a 43% increase year-over-year. Meanwhile, revenues are expected to grow by 20% from the year-ago quarter to $14.96 billion, according to data from the TipRanks Forecast page. It’s important to note that Broadcom has an impressive track record with earnings, having exceeded EPS estimates in each of the past nine consecutive quarters.

Recent Events

On Tuesday, Broadcom announced it has officially started shipping its next-generation Tomahawk 6 switch series chips. The company claims these chips deliver twice the bandwidth of any other Ethernet switch currently available, marking a significant leap in networking performance.

Top Analyst Sees More Upside for Broadcom

Recently, several analysts maintained their Buy ratings on the stock and have raised their price targets for Broadcom stock. Among them was JPMorgan analyst Harlan Sur, who reiterated an Overweight rating and $250 price target on Broadcom.

Sur noted that demand for Broadcom’s AI products, namely “custom ASICs and networking solutions,” remained strong. At the same time, its other chip segments, such as enterprise, storage, broadband, and wireless, also began to stabilize. He believed this mix should have helped the company deliver April-quarter results that either met or slightly beat expectations. Looking ahead to the July quarter, Sur expects management to guide for 5–7% sequential revenue growth, primarily driven by continued strength in AI.

Supporting this view, Main Street Data shows that in Q1 2025, Broadcom’s Semiconductor Solutions revenue climbed to $8.21 billion, while Infrastructure Software contributed $6.70 billion, reflecting healthy demand across both hardware and software lines.

Options Traders Anticipate a Large Move

Using TipRanks’ Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don’t worry, the Options tool does this for you.

Indeed, it currently says that options traders are expecting a 7.13% move in either direction.

Is AVGO Stock a Good Buy Now?

Overall, analysts have a Strong Buy consensus rating on AVGO stock based on 26 Buys and two Holds assigned in the past three months, as indicated by the graphic below. The average AVGO stock price target of $255.79 implies about 0.41% downside potential from current levels.

See more AVGO analyst ratings