AVGO Earnings & Options Face Pressure After Shares Rally 75% in 2025

Core Viewpoint - Broadcom is set to report its fiscal fourth-quarter earnings, with expectations for adjusted EPS of $1.87 and revenue of $17.5 billion, particularly focusing on AI chips [2] Financial Performance - Broadcom's shares reached a record high and have increased by 75% year-to-date [2] - The company secured $10 billion from a new qualified customer, which is expected to significantly enhance its AI revenue outlook for fiscal 2026 [2] Market Position - Broadcom is characterized as a "picks and shovels" company, producing essential components like wireless and Bluetooth chips, Ethernet switches, and infrastructure software [5] - It ranks as the seventh largest company by market capitalization in the S&P 500 [5] Analyst Sentiment - Rosenblatt raised its price target for Broadcom from $400 to $440, maintaining a buy rating, while Canaccord Genuity increased its target from $450 to $525 [13] - Overall, analyst sentiment appears bullish, with some caution due to the rapid price increase [13] Options Activity - Options volume for Broadcom is significantly higher than average, with a 2.4 times increase compared to the 5-day moving average [14] - Approximately 59% of the options traded were calls, indicating bullish sentiment ahead of the earnings report [15] Technical Analysis - Key price levels to watch include intraday highs around $414.61 and notable support levels at approximately $403 and $386 [8] - The 21-day EMA and monthly EMA are near $382, suggesting potential support if the stock retreats [10]