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Broadcom (AVGO), the global technology powerhouse renowned for its semiconductor designs and infrastructure software solutions, is once again drawing attention as it prepares to release its fiscal third-quarter 2025 results on Thursday, Sept. 4, after market close.
Investors have responded positively in anticipation, pushing the stock up by 3.2% on the announcement day. The stock has demonstrated remarkable resilience year-to-date (YTD), climbing 29.4%, a testament to market trust in its execution and forward-looking initiatives.
The momentum is far from waning, as Broadcom’s recent quarterly results indicate accelerating artificial intelligence (AI)-driven revenue growth while its infrastructure software segment continues to provide a solid foundation. The market’s reaction suggests optimism that the stock may reach new record highs.
About AVGO Stock
Headquartered in Palo Alto, California, Broadcom (AVGO) is a premier designer, developer, and global supplier of a diverse array of semiconductor devices. Its portfolio spans complex digital and mixed-signal CMOS-based solutions alongside advanced analog III-V products, serving industries from enterprise networking to AI computing.
With a market cap of $1.4 trillion, AVGO stock has delivered exceptional returns, gaining 85.9% over the past 52 weeks, far surpassing the S&P 500 Index ($SPX), which rose 14.3% in the same period.
AVGO trades at 44.15 times forward adjusted earnings and 22.01 times sales, both above industry averages, reflecting investor confidence in its growth trajectory.
The company has also demonstrated a consistent commitment to shareholder value, raising dividends for 14 consecutive years. Its annual payout stands at $2.36 per share, yielding 0.80%, with the latest quarterly dividend of $0.59 per share paid to shareholders of record on June 20 and scheduled for June 30.
Broadcom Surpasses Expectations With Q2 Earnings
Broadcom reported its fiscal 2025 second-quarter results on June 5, surpassing expectations across both top and bottom line. Consolidated revenue reached just over $15 billion, up 20.2% year-over-year (YoY), exceeding analysts’ estimates of $14.95 billion. The primary driver was soaring demand for AI semiconductors, reinforced by strong contributions from VMware.
Semiconductor revenue alone rose 16.7% to $8.4 billion. AI-specific semiconductor revenue climbed to $4.4 billion, a remarkable 46% increase from the same period last year. Meanwhile, Infrastructure software revenue also delivered solid performance, reaching $6.6 billion, up 24.8% from the prior year.
Adjusted EPS increased 43.6% from the prior year’s quarter to $1.58, slightly ahead of estimates at $1.57, while free cash flow hit an all-time high of $6.4 billion, representing a 43% margin. Management complemented these results with $4.2 billion in share repurchases.
Looking forward, Broadcom projects Q3 2025 consolidated revenue of $15.8 billion, up 21% YoY, with AI semiconductor revenue expected at $5.1 billion, marking 60% annual growth and the tenth consecutive quarter of expansion. Total semiconductor revenue is forecasted at $9.1 billion, a 25% increase YoY, while infrastructure software revenue is projected at $6.7 billion, up 16%.
Analysts anticipate Q3 2025 EPS growth of 32.4% YoY to $1.35. For the full fiscal year 2025, bottom-line growth is expected at 47.7% to $5.48, with projections for 2026 suggesting a 28.7% rise to $7.05.
What Do Analysts Expect for AVGO Stock?
Analyst sentiment around AVGO remains robust following its strong fiscal Q2 2025 performance. Bernstein SocGen has raised AVGO’s price target from $250 to $295 while maintaining an “Outperform” rating, reflecting confidence in the company’s software and semiconductor operations.
Meanwhile, UBS has reiterated a “Buy” rating and lifted its target to $345 from $290, anticipating stronger-than-expected guidance for the upcoming quarter.
AVGO currently carries an overall rating of “Strong Buy,” supported by 37 analysts covering the stock. Among them, 33 assign “Strong Buy,” one recommends “Moderate Buy,” and three suggest “Hold.”
AVGO’s average price target of $304.97 represent potential upside of 1.5% while the Street-high target of $400 reflects a 33% potential gain from current levels.
