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With a market cap of $905 billion, Broadcom Inc. (AVGO) designs, develops, and supplies various semiconductor devices with a focus on complex digital and mixed signal complementary metal oxide semiconductor-based devices and analog III-V-based products worldwide. Founded in 1961, the Palo Alto-based company operates in two segments, Semiconductor Solutions and Infrastructure Software. AVGO is expected to report its Q2 earnings on Wednesday, Jun. 11.
Ahead of the event, analysts expect AVGO to report a profit of $1.34 per share, up 54% from a profit of $0.87 per share reported in the year-ago quarter. It has exceeded analysts' earnings estimates in each of the past four quarters, which is notable. Its EPS of $1.40 in the recent quarter surpassed the analysts’ expectations by 10.2%, driven by a growth in both AI semiconductor solutions and infrastructure software.
For the current year, analysts expect AVGO to report EPS of $5.69, up 53.4% from $3.71 in fiscal 2024. Moreover, analysts expect its earnings to surge 21.8% year-over-year to $6.93 per share in fiscal 2026.
Over the past year, AVGO shares surged 42.8%, outperforming the S&P 500 Index’s ($SPX) 8.7% gains and the Technology Select Sector SPDR Fund’s (XLK) 4.2% returns over the same time frame.
On Apr. 28, Broadcom stock declined marginally after the Wall Street Journal reported that Huawei is getting ready to test an artificial intelligence processor that could replace some NVIDIA Corporation (NVDA) products, unsettling investor confidence for U.S.-based chip producers.
Nevertheless, the consensus opinion on AVGO stock is strongly optimistic, with an overall “Strong Buy” rating. Out of the 31 analysts covering the stock, 28 recommend a “Strong Buy” and three recommend a “Hold.” Its mean price target of $242.19 indicates a robust 26.7% upside potential from current price levels.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
