Broadcom Stock (AVGO) Soars to Record High on ‘Breakthrough’ Tomahawk Chip

Broadcom Inc. (AVGO) stock surged to a record high ahead of its second-quarter earnings release scheduled for June 5. The rally was mainly driven by the company announcement on Tuesday of the shipment of its next-generation Tomahawk 6 switch series chips. Adding to the momentum, the surge reflects rising investor confidence in the company’s outlook as well as the broader strength of the semiconductor sector.

Notably, Wall Street analysts expect earnings of $1.57 per share on revenue of $14.96 billion in Broadcom’s Q2 results in Thursday, June 5.

Broadcom Begins Shipping Tomahawk 6 Chips

Broadcom has officially begun shipping its Tomahawk 6 switch chips, marking what Senior Vice President Ram Velaga called a “breakthrough” in boosting the efficiency of AI processing capabilities. According to the company, the Tomahawk 6 chips offer double the bandwidth of any existing Ethernet switch on the market.

Following the announcement, Citi analyst Christopher Danely told Barron’s, “If this was not the best thing out there, it would be a surprise,” underscoring the high expectations surrounding the new chip.

Earlier this week, Danely raised his price target on AVGO stock from $210 to $276, citing strong tailwinds from AI as a key growth driver.

Analysts Remain Bullish Ahead of Q2 Earnings

Citi isn’t the only firm optimistic about Broadcom on Wall Street.

Yesterday, five-star-rated analyst Harlan Sur at J.P. Morgan maintained his Buy rating on AVGO stock. Sur highlighted that the company is set to see substantial AI revenue growth, aiming for $19-$20 billion by fiscal year 2025. This would mark an increase of more than 60% compared to last year, driven by Broadcom’s dominant position in both ASIC and high-performance switching and routing silicon segments.

Likewise, Ben Reitzes from Melius Research boosted his price target from $198 to $283 last week. In his research note, Reitzes highlighted Broadcom’s strong potential for sustained revenue growth in AI chips, even though it remains a secondary player behind Nvidia (NVDA) in this space.

Is Broadcom a Buy Stock?

Turning to Wall Street, analysts have a Moderate Buy consensus rating on AVGO stock based on 26 Buys and two Holds assigned in the past three months. The average Broadcom stock price target of $255.8 per share is similar to current trading levels.

See more AVGO analyst ratings