Broadcom (AVGO) is scheduled to announce its results for the fourth quarter of Fiscal 2025 on December 11. Ahead of the chip company’s Q4 FY25 results, Rosenblatt analyst Kevin Cassidy increased his price target for Broadcom stock to $440 from $400 and reiterated a Buy rating. Also, HSBC analyst Frank Lee reiterated a Buy rating on AVGO stock with a price target of $535, citing positives like momentum in Broadcom’s ASICs (application-specific integrated circuits) and growing adoption of Alphabet-owned Google’s (GOOGL) TPUs (tensor processing units). Notably, TPUs are designed and manufactured by Broadcom.
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Meanwhile, Wall Street expects Broadcom to report earnings per share (EPS) of $1.87, reflecting 32% year-over-year growth. Revenue is projected to increase by more than 24% to $17.5 billion. AVGO stock has risen 74% year-to-date.
Analysts Are Upbeat on Broadcom Stock
Cassidy expects Broadcom to surpass the Street’s estimates, driven by accelerating TPU shipments and additional traction for XPUs. The 5-star analyst also expects the company’s networking business to see top-line upside, supported by expansion in data center networks.
Meanwhile, Lee stated that Broadcom’s ASIC (application-specific integrated circuits) momentum is improving further but is not fully priced into AVGO stock. The 4-star analyst highlighted that in his November 24 research note, he had contended that the market was undervaluing the ASIC opportunity. Lee said that he is now much more bullish given continuous CoWoS (chip-on-wafer-on-substrate) capacity expansion amid the strong demand for Google’s TPUs.
Lee explained that Alphabet’s Gemini 3 model, launched in November, has been fully trained on TPUs, unlike previous models, which were trained on GPUs. The analyst noted that this transition has boosted market sentiment, as TPUs are now being seen as an alternative to GPUs, leading to a rally in AVGO stock price since the Gemini 3 launch.
While the Street has increased its FY26 and FY27 ASIC revenue estimates by 5% and 14%, respectively, since the Gemini 3 launch, Lee’s ASIC revenue estimates remain unchanged and are 38% and 40% above the Street’s projections. Given the improving ASIC momentum, Lee expects Broadcom to raise its ASIC revenue guidance again at its Q4 FY25 earnings call.
Is AVGO Stock a Buy, Sell, or Hold?
Overall, Wall Street has a Strong Buy consensus rating on Broadcom stock based on 24 Buys and two Holds. The average AVGO stock price target of $432.18 indicates 7.1% upside potential.
