Key takeout
- Broadcom is expected to report its first quarter financial results after the market closed on Thursday.
- Analysts are broadly bullish about chipmaker stocks despite recent losses.
- Broadcom's stock has lost about a quarter of its value since it hit an all-time high in December.
Broadcom (AVGO) is expected to report its fiscal first quarter results after the market closed on Thursday. Despite recent losses, analysts are broadly bullishing on chipmaker stocks.
All but one of the 13 analysts who cover inventory tracked by Visible Alpha issued a “purchase” or equivalent rating with one “hold” rating. The $259 consensus price target suggests it will rise roughly 30% from Friday's closing price at $199.45.
Broadcom plans to report adjusted net profit of $7.39 billion, up 22% year-on-year, revenue of $14.61 billion.
The results came after ChIP and AI stocks were sold later last week as investors responded to revenue from the announcement of NVIDIA (NVDA) and new tariffs. Nvidia's results exceeded Wall Street analysts' expectations, but investors may have been looking for more amid concerns about AI spending and uncertainty about the potential impact of the Trump administration's policies on tariffs and AI chip export curbs.
Broadcom's stock fell 9% last week, losing about a quarter of its value since reaching its all-time high in December.
