Core Viewpoint - Broadcom is in discussions with Microsoft to co-design custom AI chips, aiming to enhance its AI chip portfolio amid increasing market demand for AI operations [1] Company Overview - Broadcom is a leading global technology firm specializing in semiconductors and infrastructure software for various sectors, including data centers, networking, and wireless [2][3] - The company has a market capitalization of $1.89 trillion [3] Stock Performance - Over the past 52 weeks, Broadcom's stock has increased by 125.99%, significantly outperforming the Technology Select Sector SPDR Fund, which gained 23.62% [4] - The stock reached a 52-week high of $407.29 on December 8, influenced by news of talks with Microsoft, but has since declined by 1.5% from that peak [5] Financial Results - In Q3 fiscal 2025, Broadcom reported record revenue of $15.95 billion, a 22% year-over-year increase, surpassing analyst expectations of $15.83 billion [8] - The company's AI revenue surged by 63% year-over-year to $5.20 billion, driven by strong demand for custom AI accelerators and networking solutions [8] Valuation Metrics - Broadcom's current trailing price-to-earnings ratio stands at 103.03x, which is significantly higher than the industry average of 31.52x, indicating an elevated valuation [6]

Analysts from Bank of America and Morgan Stanley each recently raised their price targets for Broadcom stock, but noted that the chip designer faces long-term risks. The analysts said that Alphabet's (GOOGL) Google is looking to design its own future generations of AI chips in house, rather than the current generation that it has designed in partnership with Broadcom. That could put Broadcom's market share at risk if Google is successful and eventually looks to sell its designs to other current Broadcom cus ...

Core Insights - Two major tech companies, Oracle and Broadcom, are set to report quarterly earnings, with Oracle's stock down over 30% recently due to concerns about customer concentration and an AI bubble, while Broadcom's stock has risen nearly 20% since the launch of Google's Gemini 3, indicating a divergence in market sentiment towards AI investments [1][6][10]. Company Summaries Oracle - Oracle's stock surged 36% after reporting a significant increase in its cloud computing backlog, which grew to nearly $500 billion, largely due to a $300 billion deal with OpenAI [4]. - Concerns have arisen regarding Oracle's reliance on this single deal, leading to skepticism about its long-term growth potential [4]. - The company has increased its debt burden by selling $18 billion in bonds to finance data center investments, raising questions about its financial stability compared to competitors like Microsoft and Amazon [5]. Broadcom - Broadcom's stock has performed well, boosted by a $10 billion order for custom chips from a new customer, believed to be OpenAI, and optimism surrounding its AI business [7]. - The upcoming launch of Google's Gemini 3, which utilizes Broadcom-designed chips, has further enhanced market confidence in Broadcom's ability to compete with Nvidia in the AI chip market [7][8]. - Analysts have raised price targets for Broadcom, anticipating strong demand for custom chips and networking solutions to accelerate its AI business in the coming year [11]. Industry Context - Wall Street analysts are generally optimistic about the earnings reports from both companies, expecting them to reflect sustained AI demand [2]. - Recent research indicates a potential shift in the AI investment landscape, with a decrease in correlation among AI hyperscaler stocks, suggesting that not all companies may benefit equally from AI trends moving forward [12].

Core Insights - Wall Street is optimistic about Oracle and Broadcom's upcoming earnings reports, with expectations of strong AI demand continuing into next year [3][4] - Oracle's stock surged 36% after reporting a significant increase in its cloud computing backlog, which reached nearly $500 billion, largely due to a $300 billion deal with OpenAI [5] - Concerns have arisen regarding Oracle's reliance on a single large deal and its higher debt burden compared to competitors like Microsoft and Amazon [6] Group 1: Company Performance - Oracle and Broadcom are set to report quarterly earnings, following impressive results in September [7] - Oracle's stock has lost all gains from the previous quarter due to concerns over the AI bubble and customer concentration [7] - Broadcom's stock has continued to rise, reflecting a more stable investor sentiment [7] Group 2: Market Sentiment - Investors are increasingly cautious about AI investments that have driven stock market gains, making the upcoming earnings reports critical for assessing future demand [4] - Recent research from Goldman Sachs indicates that not all sector stocks may benefit equally from industry trends in the coming months [3]

Broadcom Inc. (NASDAQ:AVGO) is one of the Must-Watch AI Stocks on Wall Street. On December 5, Mizuho analyst Vijay Rakesh maintained an “Outperform” rating on the stock with a $435 price target. The firm is positive on the stock ahead of earnings as it believes Broadcom is a core AI enabler with multiple near-term and long-term catalysts. The company is set to report its fiscal Quarter report ending Oct 2025 on December 11. Analysts believe that Broadcom is a top beneficiary of custom chip growth, noting ...

Broadcom Inc. ( AVGO ) has had one good year. The stock is up over 73% year to date, and has reached a new time high on Monday, a few days before earnings due this Thursday afterI’m a retired Wall Street PM specializing in TMT; since kickstarting my career, I’ve spent over two decades in the market navigating the technology landscape, focusing on risk mitigation through the dot com bubble, credit default of ‘08, and, more recently, with the AI boom. In one word, what I’d like my service to revolve around is ...

Core Insights - Broadcom Inc. (AVGO) has experienced a significant increase in stock value, rising over 73% year to date and reaching a new all-time high shortly before its earnings report [1] Company Performance - The stock performance of Broadcom has been notably strong, with a year-to-date increase of over 73% [1] Market Context - The article reflects on the author's extensive experience in the technology sector, emphasizing the importance of momentum in investment strategies, particularly in navigating various market cycles [1]

Broadcom has grown to be one of the largest companies in the world when measured by market capitalization.Broadcom (AVGO 0.36%) has been one of the biggest beneficiaries of the rising effectiveness of AI.*Stock prices used were the afternoon prices of Dec. 6, 2025. The video was published on Dec. 8, 2025. ...

Core Viewpoint - Morgan Stanley has a highly optimistic outlook for Broadcom, reiterating an "overweight" rating ahead of the company's earnings report, with AI revenue expected to exceed $50 billion by fiscal year 2026, driven by various projects and product launches [1][2]. Group 1: Earnings Forecast - Morgan Stanley anticipates Broadcom's revenue and earnings per share for the upcoming fiscal quarter (F4Q25) to surpass market consensus, with AI revenue projected to exceed $6.6 billion, higher than the expected $6.2 billion [1][3]. - For the January quarter, revenue guidance is expected to exceed $19 billion, significantly above the market consensus of $18.5 billion, driven by strong demand for Google TPU and Tomahawk 5 chips [1][3]. Group 2: AI Revenue Growth - Broadcom is projected to achieve approximately $20 billion to $21 billion in AI revenue for fiscal year 2025, representing a year-over-year growth of about 60%, with expectations to exceed $50 billion in fiscal year 2026 [2]. - Key growth drivers include the ongoing rollout of Google's TPU v6 chips and Meta's MTIA inference chip project, along with potential new clients such as Softbank/ARM and OpenAI [2]. Group 3: Non-AI Business and Synergies - Morgan Stanley notes a gradual improvement in Broadcom's traditional semiconductor business, with VMware's software infrastructure showing strong momentum due to enterprise clients upgrading to higher-priced solutions [4]. - The combination of strong AI fundamentals and aggressive synergies in the software business creates a unique investment thesis for Broadcom, which is positioned as a leading supplier in the AI semiconductor market [4]. Group 4: Cash Flow and Dividend Outlook - Strong cash flow is expected to support a double-digit increase in dividends, with continued deleveraging efforts reducing interest expenses and enhancing profitability [5].

Corporate Earnings - Oracle (ORCL) is set to report its fiscal second-quarter results, with shares down nearly 30% from their September record, raising investor concerns regarding its aggressive AI strategy and a $300 billion deal with OpenAI [5] - Broadcom is expected to deliver year-over-year earnings growth on higher revenue for the quarter ended October 2025, with actual results being a key driver for the stock [6] - Costco is anticipated to post year-over-year earnings growth on higher revenue for the quarter ended November 2025, with consensus expecting earnings to rise 9.2% next year from $18.03 to $19.69 per share, alongside reported quarterly revenue growth of 8.1% to $86.16 billion and net income climbing over 11% to $2.61 billion [7] Economic Indicators - The Federal Reserve's upcoming meeting on December 10 is crucial, with a split among FOMC voters regarding an interest-rate cut, marking a level of division not seen since 2019 [8] - The Personal Consumption Expenditures (PCE) report showing cooling inflation has reinforced expectations for a rate cut, while U.S. consumer sentiment has improved in December [8] Earnings Outlook - S&P Capital forecasts a 6.7% year-over-year growth in S&P 500 earnings for the fourth quarter, a slowdown from the 15% gain in Q3, with the information-technology sector expected to lead with a 22.5% increase [11] - For the full year, S&P Global projects an 11% earnings growth for S&P 500, followed by gains of 13.4% in 2026 and 14.6% in 2027 [12]