Semiconductor company Broadcom (AVGO) will report its third-quarter FY25 results next week on September 4. Currently, Wall Street analysts expect Broadcom to report earnings of $1.66 in Q3, compared to $1.24 in the same quarter last year. Also, the company’s revenue for Q3 is expected to rise 21% year-over-year to $15.82 billion. Ahead of the print, several analysts reiterated Buy ratings and lifted their price targets, pointing to Broadcom’s strong momentum in AI and continued demand from hyperscalers.
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Top Analysts Weigh In Ahead of AVGO’s Q3 Print
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.
Meanwhile, Susquehanna’s Top analyst Christopher Rolland reaffirmed a Buy rating on Broadcom and lifted his price target from $300 to $350. He expects results to be in line or slightly above forecasts, helped by solid demand in AI chips, networking, and signs of recovery in the core semiconductor business.
The 5-star analyst pointed to strong spending plans from cloud giants like Google and Meta, which should fuel steady demand for Broadcom’s AI accelerators and networking chips. While he does see some short-term margin pressure as AI chips take up a bigger share of sales, Rolland remains confident in Broadcom’s long-term AI growth, especially as Google, Meta, and ByteDance ramp up to massive XPU deployments by FY27.
Is AVGO a Good Stock to Buy?
On TipRanks, AVGO stock has a Strong Buy consensus rating based on 28 Buys and two Holds assigned in the last three months. The average Broadcom stock price target of $310.75 suggests an upside potential of 4.28% from its current price. Year-to-date, shares of the company have gained 28.86%.
