Semiconductor company Broadcom (AVGO) will report its third-quarter FY25 results next week on September 4. The stock has climbed about 30% year-to-date and 97% over the past year, thanks to booming demand for its AI-focused chips and networking gear. Going into the report, Wall Street remains bullish, buoyed by growing hyperscaler demand and solid recurring customer relationships.
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What to Expect from Broadcom on September 4
Wall Street analysts expect Broadcom to report earnings of $1.66 in Q3, compared to $1.24 in the same quarter last year. Meanwhile, analysts project Q3 revenues of nearly $15.83 billion, according to the TipRanks Analyst Forecasts Page. This marks a year-over-year increase of about 21%.
As Broadcom gets ready to release its Q3 results, investors will watch AI chip sales and demand from big cloud customers. They will also look for updates on the VMware deal and the guidance for the second half of the year.
Analyst’s Take Ahead of Q3 Earnings
Heading into Broadcom’s Q3 earnings results, Citi analyst Christopher Danely reiterated a Buy rating with a price target of $315. The 4.5-star analyst expects revenues and earnings to come in above consensus estimates. He sees upside from continued AI momentum, with AI-related revenue forecast to grow 60% year-over-year in FY25 to $19.5 billion.
Looking ahead, Citi believes Broadcom will guide Q4 revenue above expectations, helped by stronger orders at Google (GOOGL) and Meta (META). While margin pressure from the growing AI mix remains a concern, Danely raised FY25 and FY26 estimates on higher AI and wireless contributions. Overall, Citi views Broadcom’s expanding hyperscaler pipeline, which includes Google, Meta, ByteDance, and prospects like OpenAI and Apple (AAPL), as a key driver for long-term growth.
Is AVGO a Good Stock to Buy?
On TipRanks, AVGO stock has a Strong Buy consensus rating based on 27 Buys and two Holds assigned in the last three months. The average Broadcom stock price target of $313.63 suggests an upside potential of 1.61% from its current price.
