TLDR
- Broadcom releases fiscal Q4 2025 earnings December 11 with Wall Street expecting $1.87 EPS on $17.5 billion revenue
- Stock has rallied 68% year-to-date driven by custom AI chip orders from tech giants
- Microsoft reportedly partnering with Broadcom for Azure custom chip development
- Analysts predict Broadcom AI chip growth will surpass Nvidia’s pace in 2026
- Company targets doubling AI revenue to $40 billion in fiscal 2026
Broadcom faces a critical earnings report on December 11 as investors assess the company’s AI chip momentum. The semiconductor maker has posted a 68% gain this year, outpacing broader market returns.
Analysts project earnings of $1.87 per share, marking 32% year-over-year expansion. Revenue forecasts reach $17.5 billion, up 24% from the prior year period. The stock now trades based primarily on AI chip business performance.
Custom chips represent Broadcom’s fastest-growing segment. The company designs application-specific integrated circuits for hyperscale cloud providers. Google, Meta, and Apple deploy these chips for AI model training and inference workloads.
Microsoft is in discussions to move custom chip development to Broadcom from Marvell. This partnership would position Broadcom as a key supplier for Microsoft’s Azure AI infrastructure. The deal expands Broadcom’s footprint among major cloud platforms.
Google Partnership Delivers Market Leadership
Google’s Trillium TPU demonstrates the success of Broadcom’s custom chip strategy. Google trained its Gemini 3 model entirely on these processors. Gemini 3 currently leads industry benchmarks for AI performance.
Google is negotiating a deal to provide TPU capacity and chips to Meta. This arrangement could increase Broadcom’s shipment volumes and validate its technology with additional customers. The partnership strengthens Broadcom’s position in AI infrastructure.
Mizuho analyst Vijay Rakesh rates the stock Outperform with a $435 target. His research shows consistent TPU demand from Google as it expands Gemini 3 usage. Rising AI workloads at Meta, Apple, and Anthropic should drive revenue growth through 2026.
Analysts Boost Revenue Projections
Morgan Stanley analyst Joseph Moore raised his price target following Asia supply chain analysis. He found accelerating AI demand and strength in Broadcom’s ASIC operations. Moore expects Broadcom’s AI chip revenue to grow faster than Nvidia’s in 2026.
The stock holds a Strong Buy consensus rating. Twenty-three analysts recommend buying shares while two rate it Hold. The average price target stands at $425.13, suggesting 8.94% potential upside. Zero analysts rate the stock a Sell.
Morningstar values Broadcom at $365 per share with a 3-star rating. The firm projects AI revenue will double to $40 billion in fiscal 2026. This forecast assumes continued momentum in custom chip orders from cloud providers.
Cash Generation Funds Debt Paydown
Broadcom maintains free cash flow margins above 40%. The company generated $30 billion in free cash flow during fiscal 2025. Management prioritizes debt reduction following the VMware acquisition.
Total debt reaches $68 billion with approximately half tied to the VMware transaction. The debt-to-EBITDA ratio declined from 3.5 times to 2.1 times over twelve months. Available cash stands at $9 billion.
The company benefits from a wide economic moat based on chip design capabilities and software customer retention. Its networking semiconductors power products from Apple, Google, Cisco, and Arista. The software division includes virtualization and mainframe solutions.
Broadcom reports fiscal Q4 results after market close on December 11 with guidance for fiscal 2026 expected.
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