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With a market cap of $947.5 billion, Broadcom Inc. (AVGO) is a global leader in designing, developing, and supplying semiconductor solutions, with a focus on complex digital, mixed-signal CMOS devices, and analog III-V products. It operates in two primary segments: Semiconductor Solutions and Infrastructure Software. Broadcom’s products serve diverse industries, including enterprise and data center networking, telecommunications, consumer electronics, and industrial automation.
AVGO is slated to announce its fiscal Q1 2025 earnings results on Thursday, Mar. 6. Ahead of this event, analysts expect the silicon and software giant to report a profit of $1.27 per share, a 47.7% growth from $0.86 per share in the year-ago quarter. The company has exceeded Wall Street's earnings expectations in three of the past four quarters while missing on another occasion. In the most recent quarter, AVGO beat the consensus EPS estimate by a 10.6% margin.
For fiscal 2025, analysts expect AVGO to report EPS of $5.38, marking a growth of 45% from $3.71 in fiscal 2024.
Shares of Broadcom have climbed 67.8% over the past 52 weeks, outperforming the broader S&P 500 Index's ($SPX) 22.9% gain and the Technology Select Sector SPDR Fund's (XLK) 12.8% return over the same period.
Shares of Broadcom jumped 24.4% following its strong Q4 earnings release on Dec. 12, including a 51.2% year-over-year revenue increase to $14.1 billion, driven by robust AI semiconductor and VMware demand. The company's custom AI accelerators (XPUs) and networking solutions contributed significantly, with AI revenues surging 150%. Broadcom’s solid Q1 2025 guidance, including projected revenue of $14.6 billion and AI revenue growth of 65%, further boosted investor confidence. Additionally, the company’s healthy free cash flow and robust adjusted EBITDA margin of 64.7% showcased operational strength.
Moreover, the stock rallied 5.2% on Dec. 23 after UBS analyst Timothy Arcuri raised its price target from $220 to $270. The upgrade was fueled by Broadcom’s guidance for AI revenues to reach $60 billion to $90 billion by 2027.
Analysts' consensus view on AVGO stock remains bullish, with a "Strong Buy" rating overall. Out of 33 analysts covering the stock, 30 recommend a "Strong Buy" and three give a "Hold" rating. As of writing, AVGO is trading below the average analyst price target of $247.76.
