May 2 - Broadcom (AVGO, Financial) will release fiscal Q2 results after the market closes Thursday, with analysts forecasting a 43% year-over-year rise in profit and nearly 20% revenue growth.
Investors have driven AVGO up more than 83% over the past year, fueled by robust AI-related demand and its strong position in semiconductors.
On average, Wall Street expects revenue of $15.02 billion, versus $12.5 billion a year ago, and adjusted net income of $7.8 billion, up from $5.39 billion. Consensus EPS is $1.57. AI revenue is projected to climb 42% year-over-year and 7% sequentially to $4.42 billion, highlighting Broadcom's deepening AI footprint.
Oppenheimer analysts, calling AVGO the “No. 2 AI franchise after NVDA,” raised their price target to $265 from $225, noting that its networking, wireless, broadband, server/storage, and software segments underpin sustainable growth. They remain “long-term buyers.”
Morgan Stanley analysts also praised Broadcom's AI positioning but said they struggle to find more upside after Nvidia's (NVDA, Financial) recent surge briefly made it the world's most valuable company. AVGO's streak of beating EPS and revenue estimates in eight straight quarters may set a high bar Thursday.
