TLDR
- Broadcom delivers fiscal Q4 earnings December 11 after the closing bell with analysts projecting $17.5 billion in revenue and $1.87 adjusted EPS
- The stock has soared 76% in 2025, more than tripling the Nasdaq Composite’s 23% gain over the identical timeframe
- CEO Hock Tan revealed $10 billion in AI chip orders from a new customer in September, improving fiscal 2026 revenue expectations
- Wall Street rates the stock a Strong Buy with 24 Buy ratings and an average price target of $436.33 per share
- The options market suggests traders expect a 7% price movement in either direction after the earnings release
Broadcom unveils its fiscal fourth-quarter results after the market closes today. Wall Street analysts forecast revenue of $17.5 billion and adjusted earnings per share of $1.87.
For the current quarter, estimates point to revenue of $18.4 billion and earnings per share of $1.97. The company has beaten earnings projections for 16 straight quarters.
Shares have climbed 76% this year. That performance dwarfs the Nasdaq Composite’s 23% advance.
The semiconductor maker competes in multiple chip categories. These include networking, broadband, server storage, wireless, and industrial markets.
Broadcom leads the high-end AI application-specific integrated circuit space. The company works with large tech firms to build custom AI processors.
Analysts Boost Targets on AI Demand
J.P. Morgan analyst Harlan Sur reaffirmed his Overweight rating and $400 price target on Sunday. He expects the October quarter to beat both his estimates and Wall Street consensus figures.
Sur cited strong demand for Broadcom’s AI products as a driver. He believes revenue, earnings, and free cash flow will all exceed expectations.
Morgan Stanley raised its price target to $443 from $409 while keeping a Buy rating. Analyst Joseph Moore sees Broadcom’s AI processor revenue growing faster than Nvidia’s in 2026.
Moore attributes this projection to Nvidia’s supply constraints. Many Nvidia products will remain supply-limited through next year, he noted.
Bank of America analyst Vivek Arya increased his price target to $460 from $400. He maintained a Buy rating on the shares.
TPU Production Ramp Supports Growth Story
Arya pointed to Google’s Gemini 3 AI model launch as a positive catalyst. The model was trained exclusively on TPUs, showing increased adoption of the technology.
Broadcom functions as a key design partner for TPU development. Arya expects TPU production to rise from 2 million units in 2025 to over 3 million in 2026.
Production could potentially hit 3.8 million units next year. This growth strengthens Broadcom’s position in the AI hardware market.
In September, CEO Hock Tan disclosed that Broadcom secured $10 billion in AI orders from a new qualified customer. He said this would improve the company’s AI revenue outlook for fiscal 2026.
Options traders are anticipating movement after the report. The at-the-money straddle suggests a 7% swing in either direction.
Wall Street maintains a Strong Buy consensus on the stock. Twenty-four analysts rate it a Buy, one rates it a Hold, and zero rate it a Sell.
The average analyst price target stands at $436.33 per share. This represents 5.7% upside potential from current trading levels.
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