Broadcom (AVGO) Stock: Analysts Bullish Ahead of Thursday Earnings Report

TLDR

Table of Contents

JPMorgan maintains Overweight rating on Broadcom (AVGO) with $250 price target ahead of Q2 earnings
Wall Street expects Q2 earnings of $1.57 per share and revenue of $14.96 billion for results due June 5
Company began shipping next-generation Tomahawk 6 switch series chips with double the bandwidth of competitors
AI-related revenues estimated to exceed $5 billion, above consensus estimate of $4.8 billion
Options traders expect 7.13% stock movement in either direction following earnings announcement

Broadcom heads into its second quarter fiscal 2025 earnings report with strong analyst backing and record-high stock prices. The semiconductor giant will announce results after market close on June 5.

JPMorgan analysts maintained their Overweight rating on the stock with a $250 price target. They cited robust demand for Broadcom’s artificial intelligence products and stabilization in non-AI semiconductor segments.

Wall Street expects the company to report earnings of $1.57 per share for the quarter. This would represent a 43% increase from the same period last year.

Revenue projections stand at $14.96 billion, marking 20% growth year-over-year. The company has exceeded earnings estimates in nine consecutive quarters.

Broadcom’s stock has surged 93% year-to-date, driven by strong AI chip demand. Shares hit a new record high this week following product announcements.

Next-Generation Chip Launch Boosts Momentum

The company announced it began shipping its Tomahawk 6 switch series chips on Tuesday. These chips deliver twice the bandwidth of competing Ethernet switches currently available.

Tomahawk 6, the world's first 102.4 Terabits/sec switch, is here.
With 2x the bandwidth of any Ethernet switch currently available, Tomahawk 6 powers next-gen scale-up and scale-out AI networks.
Tomahawk 6 isn't just an upgrade, it's a breakthrough. https://t.co/RFXs3HLgip pic.twitter.com/nnzk1e48Hn
— Broadcom (@Broadcom) June 3, 2025

The timing of this announcement ahead of earnings demonstrates Broadcom’s continued innovation in networking infrastructure. The Tomahawk 6 series targets large-scale AI clusters and data centers.

JPMorgan analyst Harlan Sur expects management to guide for 5-7% sequential revenue growth in the July quarter. This projection stems from continued AI product strength.

AI-related revenues are estimated to exceed $5 billion for the current quarter. This surpasses the consensus estimate of $4.8 billion among Wall Street analysts.

The company’s non-AI semiconductor business shows signs of stabilization. This includes enterprise, server storage, broadband, and wireless segments.

Analyst Community Remains Optimistic

Multiple investment firms have raised price targets on Broadcom stock recently. Citi increased its target to $276, while Melius maintained a Buy rating with a $283 target.

Redburn-Atlantic initiated coverage with a Buy rating and $301 price target. Mizuho Securities raised its target to $300 with an Outperform rating.

The analyst consensus rating stands at Strong Buy based on 26 Buy ratings and two Hold ratings. The average price target of $255.79 suggests limited upside from current levels.

In the first quarter of 2025, Semiconductor Solutions revenue reached $8.21 billion. Infrastructure Software contributed $6.70 billion, showing strength across both divisions.

VMware integration continues to provide revenue synergies following Broadcom’s acquisition. This adds to the company’s software portfolio growth prospects.

Options traders anticipate volatility around the earnings announcement. The expected move calculation shows a 7.13% swing in either direction.

Broadcom currently trades near its 52-week high with a market capitalization of $1.19 trillion. The company maintains gross profit margins of 76.26% with revenue growth of 40.3% over the past twelve months.

Stay Ahead of the Market with Benzinga Pro!

Want to trade like a pro? Benzinga Pro gives you the edge you need in today's fast-paced markets. Get real-time news, exclusive insights, and powerful tools trusted by professional traders: