Here's How Much Traders Expect Broadcom Stock to Move After Earnings

Core Insights - Broadcom (AVGO) is expected to report its fiscal fourth-quarter results, with traders anticipating potential record highs for the stock following the announcement [1][8] - Current options pricing indicates that Broadcom's stock could fluctuate by up to 6% by the end of the week, potentially reaching around $425 or dropping to about $377 [2] - Last quarter, Broadcom achieved a record revenue of $15.95 billion, exceeding estimates and leading some analysts to categorize it as a "Magnificent 8" stock, suggesting continued growth alongside Nvidia (NVDA) in the expanding AI industry [3] Financial Performance - Broadcom's revenue is projected to increase by 24% year-over-year to a record high of $17.48 billion, with adjusted earnings per share expected to rise to $1.88 from $1.42 in the same period last year [6] Market Position and Risks - Broadcom designs AI chips utilized by major tech companies like Google, Meta, and OpenAI for training AI models, and its stock has shown resilience amid concerns over an AI bubble [4] - Analysts from Bank of America and Morgan Stanley have raised their price targets for Broadcom but highlighted long-term risks, particularly regarding Google's potential move to develop its own AI chips, which could threaten Broadcom's market share [5] Analyst Sentiment - Analysts are overwhelmingly bullish on Broadcom, with all 12 analysts tracked by Visible Alpha rating the stock as a "buy," and an average price target of $432.02, indicating expectations for continued stock price increases [7]