is now the sixth-largest stock in the S&P 500 — is expected to post roughly 34% earnings growth and a 21% revenue increase to $15.8 billion. LSEG forecasts put overall third-quarter earnings growth at about 8.5% and the full-year advance near 10.5%, while early 2026 estimates project roughly 13.4% earnings growth, marking a third consecutive year of double‑digit gains.
The company likely saw a boost in its fiscal third quarter from AI, with AI revenue expected to rise 60% year‑over‑year to $5.1 billion, fueled by hyperscalers’ heavy spending on high‑performance accelerators and AI data centers.
Key Highlights
- Broadcom is the leading designer of application-specific integrated circuits (ASICs), helping large data‑center operators like ’s Google build custom chips. That unit, within its semiconductor division, has made Broadcom a Wall Street favorite as a beneficiary of the AI boom.
- AVGO long-term outlook is being bolstered by rising demand for AI infrastructure. Strong demand for custom AI accelerators (XPUs)—a type of ASIC used to train generative‑AI models—has helped the company; these chips integrate compute, memory and I/O to deliver the needed performance with lower power and cost, and customers include Alphabet and .
- The company is pitching its new Jericho networking chip as a way to revitalize older, smaller data centers by moving much larger volumes of data at higher speeds. According to Broadcom, Jericho4 can link more than 1 million processors across multiple data centers and delivers about four times the throughput of the prior generation.
- After more than a 100% rally since April, investors hope Broadcom’s earnings will spark further gains — but recent AI‑chip results make a “sell the news” pullback a real risk.
Analysts Expectation
- Evercore ISI raised its AVGO price target to $342 from $304 and kept an Outperform rating. Analysts point to positives; Google’s TPU product cycle, strong demand for high‑speed datacenter connectivity and networking chips.
- Morgan Stanley kept Broadcom AVGO at Overweight and raised its price target to $357 from $338.
- Piper Sandler reiterated an Overweight rating on Broadcom and raised its price target to $315 from $300, citing accelerating AI revenue and steady software growth. The firm expects the semiconductor segment to shine, forecasting AI‑related sales to climb 60% year‑over‑year to $5.1 billion.
AVGO Q3 2025 earnings after-market (4:15 pm ET) Thursday September 04, 2025
Option Statistics
Put/Call ratio suggests the following three scenarios:
- The put/call ratio ranges from 1.5074 to 0.616 across the next four expiries, signaling option traders are undecided — this week’s expiry is put‑heavy, while the next is call‑heavy.
- Weak earnings or guidance could spark a sharp sell‑off.
- Stronger‑than‑expected results and guidance would likely produce a gradual rally.
- Options flow shows large net positive gamma at the 310 strike and a smaller net negative gamma at the 290 strike for the Sep‑2025 to Dec‑2027 expiries.
Technical Analysis Perspective
- AVGO broke below its 16-month bullish channel in late August ’25.
- Prices are now trading within a rectangle pattern between 311 and 295.50 to 282.
- A rejection at 311 after earnings could lead to a decline to 295.50, with further downside toward 282.
- A decisive break below 282 would signal further downside potential.
- Conversely, a quick rally above 311 could invalidate the downside view, targeting around 318 and potentially higher.
Weekly Candlestick Chart
AVGO Seasonality Chart:
Since 2009, AVGO has seen September close with a 1.1% gain in 41% of years and August with a 0.9% gain in 50% of years.
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