Broadcom Reports Q2 Beat & Impressive Guidance, Shares Up 5%

Broadcom (NASDAQ:AVGO) shares rose more than 3% intra-day today after HSBC upgraded the company from Hold to Buy and raised its price target to $400, citing a sharp upward revision in its outlook for the company’s custom ASIC business—driven by accelerating AI infrastructure spending.

Following Broadcom’s Q2 2025 earnings call, consensus estimates for ASIC revenue in 2026 and 2027 were raised significantly. However, HSBC argues that even these bullish revisions still underestimate the company’s true potential. The firm expects ASIC revenue to grow much faster than the broader AI GPU market, fueled by a surge in hyperscaler investment in custom silicon—from just 2% of AI server capex in 2023 to an estimated 14% by 2027.

Additionally, HSBC notes a trend toward larger ASIC die sizes, which command significantly higher prices. As a result, the firm now expects blended average selling prices for ASICs to climb 92% year-over-year in 2026 and another 25% in 2027.

Reflecting this view, HSBC has sharply raised its own ASIC revenue projections for Broadcom to $28.4 billion in 2026 and $42.8 billion in 2027—42% and 69% above current Street estimates, respectively.

Given this potential, HSBC believes Broadcom’s current valuation fails to fully reflect the magnitude of its AI-driven ASIC growth, prompting the upgrade to Buy and a more bullish price target.

• Broadcom Inc. (NASDAQ:AVGO) receives a new price target from Truist Financial, indicating a 12.19% potential increase.
• The company reports a 46% increase in revenue and an earnings growth rate of nearly 44%, driven by AI semiconductor growth and VMware momentum.
• Despite a recent stock price decline, Broadcom's market capitalization remains strong at approximately $1.18 trillion, with a trading volume of 21.26 million shares.

Broadcom Inc., trading under NASDAQ: AVGO, is a global technology company known for its semiconductor and infrastructure software solutions. It operates in various sectors, including data centers, networking, and broadband. Broadcom's diverse portfolio sets it apart from competitors like Nvidia, which focuses more on AI. Recently, William Stein from Truist Financial set a new price target for AVGO at $295, a 12.19% increase from its current price of $262.95.

Broadcom's recent financial performance has been impressive, with second-quarter earnings surpassing estimates. The company reported a 46% increase in revenue compared to the previous year, reaching $15 billion. This growth was driven by organic growth in AI semiconductors and the momentum of VMware. Despite this, the stock price experienced a decline of 3.12% following the earnings release, as highlighted by Kimberly Forrest from Bokeh Capital Partners.

The company's adjusted earnings per share were reported at $1.58, exceeding the forecast of $1.57. This reflects an earnings growth rate of nearly 44%, above the expected 43%. Broadcom's management remains optimistic about the company's future, particularly in the AI sector. They have projected revenues of approximately $15.8 billion for the upcoming period, indicating continued growth.

Despite the recent stock price decline, Broadcom's market capitalization stands at approximately $1.18 trillion. The stock has fluctuated between a low of $248.37 and a high of $255.27 today. Over the past year, AVGO has reached a high of $265.43 and a low of $128.50. The trading volume for AVGO is 21.26 million shares, reflecting strong investor interest.

• Broadcom Inc. (NASDAQ:AVGO) is set to release its fiscal Q2 earnings with analysts expecting EPS of $1.57 and revenue of approximately $14.97 billion.
• The company's performance is a significant indicator within the semiconductor industry, especially in the AI-chip market, with a 19.5% increase in revenue projected.
• AI-related revenues are expected to exceed $5 billion, showcasing strong demand for Broadcom's AI products and its substantial exposure to AI infrastructure.

Broadcom Inc. (NASDAQ:AVGO) is a prominent player in the semiconductor industry, known for its diverse range of products, including semiconductors and infrastructure software solutions. The company is set to release its fiscal Q2 earnings on June 5, 2025. Analysts expect earnings per share (EPS) of $1.57 and revenue of approximately $14.97 billion. Broadcom's performance is closely watched, especially given its significant role in the AI-chip market.

The semiconductor industry has mostly reported its earnings for the period ending April 30, with Broadcom being one of the last major firms to announce its results. NVIDIA, a larger competitor, reported strong earnings on May 28, 2025, which exceeded expectations and led to a moderate rise in its share price. In contrast, Marvell Technology, a smaller rival, saw a decline in its share price post-earnings. Broadcom's upcoming earnings report is anticipated to provide insights into its performance relative to these industry peers.

Broadcom's previous fiscal Q1 results in March saw a notable post-earnings performance, with shares rising by nearly 9% the following day. This helped alleviate concerns in the AI-chip market, especially as NVIDIA and Marvell had experienced significant share price declines after their earnings reports. Analysts are keenly watching Broadcom's upcoming earnings to see if it can continue its strong performance, as highlighted by JPMorgan's positive outlook.

The positive outlook for Broadcom is attributed to strong demand for its AI products and stabilization in its non-AI semiconductor business. AI demand is a significant driver of Broadcom's revenue growth, with AI-related revenues projected to exceed $5 billion, surpassing the consensus estimate of $4.8 billion. Broadcom remains a top pick in the semiconductor sector due to its substantial exposure to AI infrastructure, as noted by JPMorgan.

Broadcom anticipates a 19.5% increase in revenue, reaching $14.9 billion, compared to the same period last year. This growth is largely driven by a projected 44% rise in AI revenues, fueled by demand for XPUs and investments in data centers. Additionally, VMware's transition to subscription models and the strong adoption of VCF and Private AI Foundation are contributing to software growth. The Zacks Consensus Estimate aligns closely with Broadcom's revenue expectations, pegging it at $14.92 billion.

Broadcom (NASDAQ:AVGO) surged more than 7% intra-day today after posting robust fiscal first-quarter earnings and issuing an optimistic outlook for the current quarter, driven by sustained demand for its AI chips.

The semiconductor giant has benefited from a growing shift among major cloud providers seeking alternatives to Nvidia, whose supply constraints have pushed tech titans like Microsoft and Amazon to explore Broadcom and its peer Marvell for AI chip solutions. Broadcom’s custom AI chips are helping large-scale language models process vast amounts of data at higher speeds, making them an attractive option for cloud computing firms.

For the quarter, Broadcom reported adjusted earnings per share of $1.60 on revenue of $14.92 billion, beating analyst estimates of $1.51 EPS and $14.59 billion in revenue. AI-related revenue surged 77% year-over-year to $4.1 billion, reinforcing its position as a key player in the AI-driven semiconductor space.

Broadcom’s core semiconductor solutions business posted a 55% increase, generating $8.2 billion, while its infrastructure software division also performed well, growing 45% to $6.7 billion.

The company also delivered strong guidance for its fiscal second quarter, projecting revenue of $14.9 billion, surpassing market expectations of $14.73 billion.

Broadcom (NASDAQ:AVGO) surged more than 7% intra-day today after posting robust fiscal first-quarter earnings and issuing an optimistic outlook for the current quarter, driven by sustained demand for its AI chips.

The semiconductor giant has benefited from a growing shift among major cloud providers seeking alternatives to Nvidia, whose supply constraints have pushed tech titans like Microsoft and Amazon to explore Broadcom and its peer Marvell for AI chip solutions. Broadcom’s custom AI chips are helping large-scale language models process vast amounts of data at higher speeds, making them an attractive option for cloud computing firms.

For the quarter, Broadcom reported adjusted earnings per share of $1.60 on revenue of $14.92 billion, beating analyst estimates of $1.51 EPS and $14.59 billion in revenue. AI-related revenue surged 77% year-over-year to $4.1 billion, reinforcing its position as a key player in the AI-driven semiconductor space.

Broadcom’s core semiconductor solutions business posted a 55% increase, generating $8.2 billion, while its infrastructure software division also performed well, growing 45% to $6.7 billion.

The company also delivered strong guidance for its fiscal second quarter, projecting revenue of $14.9 billion, surpassing market expectations of $14.73 billion.

• Broadcom Inc.'s (NASDAQ:AVGO) target price is significantly lower than its market price, indicating a pessimistic outlook from analysts.
• Despite a negative price percentage difference, Broadcom's diverse product offerings and market presence position it to navigate industry challenges.
• Advanced Micro Devices, Inc. (NASDAQ:AMD) is seen as having the highest growth potential among its peers, despite a similar pessimistic price outlook.

Broadcom Inc. (NASDAQ:AVGO) is a global technology company that designs, develops, and supplies a broad range of semiconductor and infrastructure software solutions. The company serves various markets, including data centers, networking, software, broadband, wireless, and industrial. Broadcom competes with other major players in the semiconductor industry, such as Advanced Micro Devices, Inc. (NASDAQ:AMD).

Currently, Broadcom's target price is set at $101.85, which is significantly lower than its market price of $224.80. This indicates a pessimistic outlook from investment analysts, with a price percentage difference of -54.69%. Such a large gap suggests that analysts may have concerns about Broadcom's future performance or market conditions affecting the semiconductor industry.

In comparison, AMD, one of Broadcom's closest peers, has a current stock price of $126.91 and a target price of $64.40. This results in a price percentage difference of -49.25%. Despite this negative outlook, AMD is considered to have the highest growth potential among its peers. This could be due to AMD's strong product lineup and strategic market positioning.

The semiconductor industry is known for its rapid technological advancements and intense competition. Companies like Broadcom and AMD must continuously innovate to maintain their market positions. While Broadcom faces a challenging outlook, its diverse product offerings and established market presence could help it navigate industry challenges.

• Broadcom Inc.'s (NASDAQ:AVGO) target price is significantly lower than its market price, indicating a pessimistic outlook from analysts.
• Despite a negative price percentage difference, Broadcom's diverse product offerings and market presence position it to navigate industry challenges.
• Advanced Micro Devices, Inc. (NASDAQ:AMD) is seen as having the highest growth potential among its peers, despite a similar pessimistic price outlook.

Broadcom Inc. (NASDAQ:AVGO) is a global technology company that designs, develops, and supplies a broad range of semiconductor and infrastructure software solutions. The company serves various markets, including data centers, networking, software, broadband, wireless, and industrial. Broadcom competes with other major players in the semiconductor industry, such as Advanced Micro Devices, Inc. (NASDAQ:AMD).

Currently, Broadcom's target price is set at $101.85, which is significantly lower than its market price of $224.80. This indicates a pessimistic outlook from investment analysts, with a price percentage difference of -54.69%. Such a large gap suggests that analysts may have concerns about Broadcom's future performance or market conditions affecting the semiconductor industry.

In comparison, AMD, one of Broadcom's closest peers, has a current stock price of $126.91 and a target price of $64.40. This results in a price percentage difference of -49.25%. Despite this negative outlook, AMD is considered to have the highest growth potential among its peers. This could be due to AMD's strong product lineup and strategic market positioning.

The semiconductor industry is known for its rapid technological advancements and intense competition. Companies like Broadcom and AMD must continuously innovate to maintain their market positions. While Broadcom faces a challenging outlook, its diverse product offerings and established market presence could help it navigate industry challenges.