Broadcom Set to Report Earnings After $520 Billion Slide
The chipmaker reports Wednesday after the bell, with the market looking for 84.8% revenue growth following a difficult summer for the stock.
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Wednesday's Report
Broadcom, a fabless chip and software maker listed on the Nasdaq under the ticker AVGO, is due to report quarterly results on Wednesday after the close of trading, according to The Globe and Mail. Fabless means the company designs its chips but does not own the factories that manufacture them.
In its previous quarter, Broadcom reported revenue of $22.19 billion, up 47.9% from a year earlier, ahead of analysts' expectations. The Globe and Mail called it a satisfactory quarter, with revenue guidance for the following quarter beating expectations but inventory levels rising.
For the quarter now being reported, the market expects revenue to grow 84.8% year on year, up from a 22% increase in the same quarter a year ago. Analysts have generally reconfirmed their estimates over the past 30 days, and The Globe and Mail notes that Broadcom rarely misses Wall Street's revenue forecasts.
The Summer Decline
Bloomberg reports that Broadcom has had a difficult summer on the stock market, with a disappointing outlook sending the shares into a tailspin of roughly $520 billion since they hit a high in early June. Bloomberg describes Broadcom as the third most valuable chipmaker.
According to Bloomberg, investors are hoping for a repeat of last week's results from Nvidia, the world's biggest chipmaker. Nvidia projected sales growth of 70% in its next fiscal year, which pushed its stock to its best day since April 2025.
The sources do not say what specifically caused Broadcom's June outlook to disappoint, nor do they give a dollar figure for the revenue analysts expect this time.
Peer Results and Price Targets
Two rivals in the processors and graphics chips segment have already reported, and both saw their shares fall despite beating forecasts, The Globe and Mail says. Intel grew revenue 25.4% year on year and beat expectations by 11.7%, then traded down 7.9%. Lattice Semiconductor reported revenue up 62.2%, topping estimates by 8.6%, and fell 7%.
The Globe and Mail says the segment has generally underperformed, with share prices down 2.3% on average over the past month. Broadcom is down 5.3% over the same period.
The publication puts Broadcom's average analyst price target at $525.97, against a share price of $371.30.
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