AVGO stock slipped today as investors brace for Broadcom’s earnings report this Thursday evening, despite Wall Street maintaining bullish momentum on the company’s surging AI chip business. The semiconductor giant is expected to deliver strong results, but the pre-earnings weakness suggests traders are taking profits ahead of the event. Rosenblatt analyst Kevin Cassidy just raised his price target to $440, signaling confidence in what lies ahead.
🔥 Quick Facts
- Broadcom Q4 earnings report scheduled for Thursday, December 11, 2025 after market close, with adjusted EPS expected at $1.87
- Q4 revenue forecast of $17.46 billion, representing significant year-over-year growth driven by AI semiconductor solutions estimated at $6.2 billion
- AVGO stock climbed 75% in 2025, fueled by robust demand for custom AI chips including Google’s tensor processing units (TPUs)
- Average Wall Street price target stands at $432.02, with Rosenblatt raising its target to $440, suggesting 8-10% upside potential
Wall Street Eyes Strong AI Momentum Ahead of Q4 Earnings
Intuit emerges as best software stock for 2026 while stock crashes to bargain levels analysts didn’t expect
2026 tax brackets shock Americans with hidden paycheck truth nobody expected
Broadcom enters earnings season with exceptional momentum from its AI chip business. Custom AI semiconductor solutions are driving the majority of revenue growth, with investors particularly focused on expanding relationships with major cloud providers. Wall Street consensus remains decidedly bullish, with most analysts expecting the company to beat revenue expectations.
The chipmaker’s Q3 2025 performance already demonstrated the AI tailwind, generating $15.95 billion in quarterly revenue, up 22% year-over-year. Management guided for continued strength through Q4, with industry experts projecting fiscal year 2026 revenue could exceed $60 billion based on current growth trends.
Key Financial Metrics and Analyst Expectations
Marcus Lemonis takes CEO role at Bed Bath & Beyond with $25M cost-cutting plan and watch what industry experts are saying about his next move
SPX surges 34 points at open with shocking tech recovery, here’s what caused the unexpected Venezuela rally
Analysts are bracing for exceptional earnings quality from Broadcom. Adjusted earnings per share (EPS) expectations cluster around $1.87, with some forecasters suggesting potential upside if custom ASIC orders accelerate. The company’s gross margin is estimated to hold steady around 76%, indicating strong pricing power in the AI chip market.
Looking ahead to fiscal 2026, Wall Street projects full-year EPS guidance between $2.40 and $2.65, significantly higher than previous forecasts of $1.80 to $2.20. This dramatic increase reflects confidence in multi-year AI infrastructure spending cycles from hypersceller cloud providers.
| Metric | Q4 2025 Estimate | Commentary |
| Revenue | $17.46 Billion | YoY growth of 24%, AI solutions core driver |
| Adjusted EPS | $1.87 | Strong earnings quality expected |
| Gross Margin | 76% | Stable margin profile amid pricing strength |
| Average Price Target | $432.02 | Rosenblatt now $440, highest recent upgrade |
Rosenblatt Raises Price Target to $440 on TPU/ASIC Strength
In a significant endorsement just hours before earnings, Rosenblatt analyst Kevin Cassidy raised AVGO’s price target from $400 to $440 while maintaining a Buy rating. The $40 increase reflects growing conviction that custom AI chip orders will remain robust throughout 2026 as data center operators build out next-generation infrastructure.
Multiple Wall Street firms have signaled similar confidence. Goldman Sachs recently adjusted its framework while acknowledging the company’s unique position in custom silicon for major cloud providers. Bank of America has maintained bullish coverage, pointing to steady AI demand extending well into 2026 as a key validation of the secular growth thesis.
Why AVGO Stock Slipped Despite Bullish Sentiment
Market dynamics reveal an interesting disconnect between fundamental strength and near-term price action. AVGO shares have already climbed 75% in 2025, making prudent profit-taking ahead of earnings a natural occurrence. Options markets suggest traders expect a 2-3% move in either direction after results release, indicating balanced positioning despite obvious fundamental improvements.
The broader semiconductor sector faced headwinds earlier this week following Oracle’s third-quarter earnings disappointment, which sparked concerns about overall AI spending sustainability. This sector-wide pressure filtered through to Broadcom shares, though most analysts view the sell-off as an opportunity for value-conscious investors.
Will Tomorrow’s Numbers Justify the $440 Price Target and Beyond?
The critical question for Thursday evening centers on forward guidance rather than backward-looking results. Will management maintain confidence in continued AI infrastructure spending momentum? If Broadcom projects fiscal 2026 revenues exceeding analyst consensus and reiterates strong growth through at least mid-2026, the stock could easily reach or exceed $440 on earnings enthusiasm. However, any hint of moderation in customer orders or margin compression could trigger profit-taking despite strong current-quarter numbers. The verdict arrives Thursday after-hours.
Patrick Graham is a business and finance journalist translating Wall Street’s complexities into stories that matter to everyday readers. With extensive experience in financial journalism and economic analysis, this expert journalist provides sharp insights on market trends, corporate developments, and the economic forces affecting daily life. His reporting helps readers make sense of the business world’s biggest moves.