:max_bytes(150000):strip_icc()/GettyImages-2217725522-4561c01b2a9c47bc9272b0d77e8a5e7e.jpg "Here’s How Much Traders Expect Broadcom Stock to Move After Earnings")
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Key Takeaways
- Broadcom is scheduled to release its latest earnings report after the market closes Thursday, with sales and profits expected to continue surging.
- Current options pricing suggests the stock could continue rising into record territory after hitting a new all-time high on Monday.
Broadcom (AVGO) is slated to release its fiscal fourth-quarter results after the market closes on Thursday, with traders expecting the chipmaker’s stock could hit fresh record highs after the report.
Based on current options pricing, Broadcom stock is expected to rise or fall by up to 6% by the end of the week. Based on Monday’s closing price, that would lift Broadcom’s stock to around $425 on the high end, further past the intraday record of $407 the stock set on Monday, or push it down to about $377.
Last quarter, Broadcom’s revenue hit a record $15.95 billion as the company topped estimates, prompting some analysts to call Broadcom a “Magnificent 8” stock that could continue to grow alongside Nvidia (NVDA) if the AI industry keeps expanding. Broadcom stock rallied following the report, setting multiple record highs in the months since.
Why This Matters to Investors
Broadcom designs AI chips used by several big tech companies—including Google, Meta and OpenAI—to train and run AI models such as ChatGPT and Gemini. Broadcom stock has been less affected than shares of other tech giants by the recent concerns over an AI bubble.
Analysts from Bank of America and Morgan Stanley each recently raised their price targets for Broadcom stock, but noted that the chip designer faces long-term risks. The analysts said that Alphabet’s (GOOGL) Google is looking to design its own future generations of AI chips in house, rather than the current generation that it has designed in partnership with Broadcom. That could put Broadcom’s market share at risk if Google is successful and eventually looks to sell its designs to other current Broadcom customers.
Broadcom’s revenue is expected to jump 24% year-over-year to another record high of $17.48 billion, while adjusted earnings per share are projected to come in at $1.88, compared to $1.42 in the like period a year ago.
Analysts are overwhelmingly bullish on Broadcom stock, with all 12 analysts with current ratings tracked by Visible Alpha rating the chipmaker as a “buy.” The stock has an an average price target of $432.02, as analysts expect shares to continue rising to record levels.
