Semiconductor company Broadcom (AVGO) is set to report its Q4 earnings results on December 11 after the market closes. Analysts are expecting earnings per share to come in at $1.87 on revenue of $17.47 billion. This compares to last year’s figures of $1.42 and $14.05 billion, respectively. It’s worth noting that Broadcom has beaten earnings estimates for 16 consecutive quarters. And there are reasons to believe that this win streak could continue.
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In fact, Morgan Stanley (MS), led by five-star Joseph Moore, recently raised its price target on Broadcom from $409 to $443 while maintaining a Buy rating. The firm expects Broadcom to grow its AI processor revenues slightly faster than Nvidia’s (NVDA) in 2026, but says this is mainly due to Nvidia’s supply constraints. It also noted that many key Nvidia products will remain supply-limited through 2026. Customers are especially concerned about getting enough Nvidia hardware, particularly the Vera Rubin chip, though Google’s (GOOGL) TPU has proven to be a capable alternative.
Meanwhile, five-star Bank of America (BAC) analyst Vivek Arya also raised his price target on Broadcom to $460 from $400 and reaffirmed a Buy rating. He pointed to the successful launch of Google’s Gemini 3 AI model, which was trained entirely on TPUs, as a sign of growing TPU adoption. Arya sees this trend benefiting Broadcom, which is a key design partner. He expects TPU production to rise from 2 million units in 2025 to over 3 million in 2026, and potentially reach up to 3.8 million units. This increase in TPU usage could strengthen Broadcom’s role in the AI hardware space.
What Do Options Traders Anticipate?
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% move in either direction.
Is AVGO Stock a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Strong Buy consensus rating on AVGO stock based on 24 Buys, two Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average AVGO price target of $432.18 per share implies 6.4% upside potential.
