The market is once again all in on Broadcom , pushing up the stock 31% over the past month and 14% this year. Eyes now turn to its fiscal second-quarter earnings report for the quarter that ended in April, due to be released Thursday after the market close. Investors have piled into the chipmaker and infrastructure software provider after strong first-quarter earnings were reported in March, when Broadcom’s second-quarter guidance for sales and adjusted earnings before interest, taxes, depreciation and amortization, or EBITDA, also topped analysts’ estimates and it touted “continued strength in AI semiconductor revenue.” A month later, Broadcom authorized a $10 billion buyback of stock this year. Shares have continued to climb ahead of the next set of results, hitting a record high Wednesday of $261.08, its second consecutive record close. Wall Street investment banks remain optimistic toward Broadcom, expecting the booming artificial intelligence business to work in tandem with a recovery in Broadcom’s non-AI semiconductor business. Twelve-month price targets range between $200 and $301 after the stock’s latest run, however. Nearly 90% of the analysts covering Broadcom rate it the equivalent of a buy, according to FactSet data. Analysts polled by LSEG are expecting the company to report earnings of $1.56 per share on revenue of $14.99 billion, equal to year-over-year growth of 43% and 20%, respectively. Read what some analysts say they want to hear in Broadcom’s latest quarter: Citi: buy rating, price target to $276 from $210 Analyst Christopher Danely raised his price target on the stock, toward the high end of its recent trading range, given his expectation that Broadcom will post a beat-and-raise quarter due to higher artificial intelligence sales. “With its non-AI semi business (27% of F25E sales) down roughly 40% from the peak, we believe the business should recover from the current levels and offset most of the gross margin dilution from its AI business,” Danely said in a Monday note to clients. “We expect upside to AVGO’s AI business throughout C25E driven by ramps at Google and Meta, and we model F25E AI sales to grow 48% YoY to roughly $18.1 billion. AVGO currently has three customers shipping in volume with two others on track to begin shipping in C26.” JPMorgan: overweight, target $250 Broadcom remains JPMorgan’s top pick in the firm’s semiconductor coverage. Analyst Harlan Sur credited Broadcom’s exposure to AI infrastructure spending trends, diversified end market sales and “best in-class gross, operation, and free cash flow margins.” Broadcom is the second leading global AI semiconductor supplier and leading provider of both custom chip AI ASIC and cloud, AI networking, switch and routing chips, he said. “We continued to see a strong demand profile for its AI products (custom ASICs and networking solutions), stabilization in the non-AI semi business (e.g., enterprise, server/storage, broadband, wireless) and continued VMware revenue synergy unlock. As a result, we expect Apr-qtr revenue/earnings/FCF to be in-line to slightly better vs our/consensus expectation … the non-AI semi businesses should gradually improve on improving cyclical trends with potential revenue upside in the wireless segment,” Sur said in a Tuesday report. Sur’s price target suggests Broadcom faces a 4% decline from Tuesday’s close. Deutsche Bank: buy, target $205 Analyst Ross Seymore plans to revisit his price target after Broadcom reports this week. His current target is at the low end of the range on the Street and if continued, would imply roughly 21% downside from Broadcom’s latest close. “We expect a typical solid beat/raise, with the midpoint of F2Q revenue guidance/DBe at ~$14.9b (~flat q/q) and F3Q at DBe ~ $15.8b (~+5% q/q), as y/y strength persists in the co’s AI and Software segments, with non-AI semiconductor solutions still flirting with a steady recovery,” Seymore said in a May 28 note. “Overall, we continue to view AVGO as offering a unique combination of upside drivers with its AI business ramping in XPUs + Connectivity, its cyclical businesses slowly rebounding, and its Software business benefiting from VMW integration.” Oppenheimer: overweight, 12-18 month target $265 Analyst Rick Schafer’s price target suggests about 2% upside ahead for Broadcom, based on Wednesday’s close. Among several growth catalysts, Schafer said Broadcom has a sustained competitive advantage in the high-end filter market, boasts a strong M & A record with growing earnings per share and free cash flow and maintains its leadership in custom ASICs. “We believe AVGO has one of the most strategically and financially attractive business models in semiconductors,” the analyst said in a May 29 note. “AVGO [is] the undisputed custom ASIC leader with seven announced projects. AI ASIC projects led by GOOG, META, ByteDance ($60B-$90B SAM in 2027) lead near term. OpenAI and Apple project ramp next year, followed by two new projects announced March 6.” Mizuho: outperform, price target to $300 from $250 Analyst Vijay Rakesh’s new price target implies about 15% upside from the last close for Broadcom. He is bullish on Broadcom’s AI custom silicon business ramping up through 2026, and sees growth in networking with its high-speed SerDes IP technology used in AI infrastructure and data centers. “We see FCF growing potentially to ~$33B/yr in F25E(Oct), a good AI roadmap with XPU and connectivity, and VMWare integration ahead of schedule,” Rakesh said in a May 27 note.
