TLDR
- Broadcom reports Q4 fiscal 2025 earnings on December 11, with Wall Street expecting $1.66-$1.87 EPS and $17.47-$17.5 billion in revenue
- Mizuho analyst Vijay Rakesh maintains Outperform rating with $435 price target, calling AVGO a “Top Pick for 2026”
- AI-related semiconductor sales projected to reach $6.2 billion, up 66% year-over-year, with backlog hitting $110 billion
- Google’s expansion of TPU capacity to external customers driving demand for Broadcom’s AI accelerators and networking chips
- Analysts from Citi and Goldman Sachs expect Broadcom to beat estimates and raise guidance for Q1 2026
Broadcom is preparing to report fourth-quarter earnings on December 11. The timing comes as Wall Street watches closely for signs of sustained AI infrastructure spending.
Analysts expect the company to post earnings between $1.66 and $1.87 per share. Revenue estimates range from $17.47 billion to $17.5 billion. That marks a 24.5% to 31.7% increase from last year.
The analyst pointed to steady demand from Google. The tech giant is expanding its TPU systems across Gemini 3 and newer AI models. This expansion supports more custom chip wins for Broadcom.
Google recently opened its TPU capacity to external customers. That move has increased demand for Broadcom’s AI accelerators and networking chips. The shift puts Broadcom in position to capture more AI-driven revenue through 2026.
Broadcom also works with Meta, Apple, and Anthropic. These companies are ramping up AI workloads. As they train larger models, they need faster and more efficient chips.
AI Sales Drive Growth
AI-related semiconductor sales are forecast to hit $6.2 billion. That represents a 66% jump from a year ago. The company’s backlog has climbed to $110 billion, reflecting strong demand from hyperscalers and major cloud providers.
Rakesh noted strength in Broadcom’s networking business. The company provides switches and chips that help run large AI clusters. Demand is growing as cloud firms expand their infrastructure.
Citi and Goldman Sachs both expect Broadcom to beat estimates. They also predict the company will raise guidance for the first quarter of 2026. Citi forecasts Q1 revenue above $18 billion with gross margins holding at 76%.
Looking Ahead
Broadcom has several new chip programs set to ramp in fiscal 2027 and 2028. These upcoming launches keep the company ahead of current Wall Street estimates. The company has beaten expectations for four straight quarters.
In the third quarter, Broadcom delivered $1.69 per share and $15.95 billion in revenue. Both numbers came in ahead of forecasts. Return on equity was 36.6%, with net margin at 31.59%. Top-line growth reached 22% year-over-year.
Forward guidance will be critical when the company reports. Investors are watching to see if Broadcom can maintain momentum as AI spending continues.
TipRanks gives AVGO stock a Strong Buy consensus rating. The rating is based on 23 Buys and two Holds assigned in the last three months. The average share price target of $425.13 implies almost 11.57% upside potential.
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