Is Broadcom (AVGO) Stock a Buy Ahead of Q4 Earnings December 11?

TLDR

• Broadcom reports fiscal Q4 2025 earnings on December 11, with analysts expecting EPS of $1.87 and revenue of $17.5 billion
• Stock has jumped 68% in 2025, driven by AI partnerships and custom chip demand from Google, Meta, and Apple
• Microsoft reportedly shifting custom chip development from Marvell to Broadcom for Azure AI chips
• Analysts predict Broadcom’s AI chip revenue could grow faster than Nvidia’s in 2026
• Wall Street maintains Strong Buy rating with 23 Buy ratings and average price target of $425.13

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Broadcom stock sits at a crossroads as investors wait for fiscal fourth-quarter earnings on December 11. The semiconductor company has posted a 68% gain this year, fueled by AI partnerships and rising demand for its custom chips.

Broadcom Inc., AVGO

Analysts expect earnings of $1.87 per share, up 32% year-over-year. Revenue projections stand at $17.5 billion, marking 24% annual growth.

The AI chip business has become the main driver for Broadcom’s valuation. The company designs custom chips for tech giants including Google, Meta, and Apple. These application-specific integrated circuits handle AI training and inference workloads.

Microsoft is reportedly moving its custom chip development to Broadcom from Marvell. The shift would position Broadcom as a key partner for Microsoft’s future AI chips used across Azure. This adds to the company’s growing roster of hyperscale clients.

Google TPU Partnership Drives Growth

Google’s Trillium TPU, designed with Broadcom, has generated strong interest in recent weeks. Google trained its Gemini 3 model entirely on these chips. The model currently leads the market in performance.

Google is also working on a deal to rent TPU capacity and sell TPU chips to Meta. This expansion could drive higher shipments for Broadcom and attract more custom chip customers.

Mizuho analyst Vijay Rakesh maintained his Outperform rating with a $435 price target. His supply chain checks show steady TPU demand from Google as it expands Gemini 3 usage. Rising AI workloads at Meta, Apple, and Anthropic should support stronger revenue through 2026.

Analyst Targets Point Higher

Morgan Stanley analyst Joseph Moore raised his price target after checks in Asia revealed stronger AI demand. The analyst expects Broadcom’s AI chip revenue to outpace Nvidia’s growth in 2026, backed by robust TPU supply chain trends.

Morningstar values Broadcom at $365 per share with a 3-star rating. The firm expects AI revenue to double to $40 billion in fiscal 2026. This projection assumes continued strength in custom chip shipments to major cloud providers.

The company holds a wide economic moat from its chip design capabilities and software switching costs. Broadcom generates free cash flow margins above 40%. It produced $30 billion in free cash flow in fiscal 2025.

Broadcom carries $68 billion in gross debt, with half from the VMware acquisition. The company reduced its debt-to-EBITDA ratio from 3.5 times to 2.1 times over the past year. Cash and equivalents total $9 billion.

Wall Street rates Broadcom as a Strong Buy based on 23 Buy ratings and two Hold ratings. The average price target of $425.13 implies 8.94% upside from current levels.

Broadcom’s networking and wireless chip businesses serve Apple, Google, Cisco, and Arista. The company also operates software divisions focused on virtualization and mainframe technology. Analysts will watch for fiscal 2026 guidance when the company reports results on December 11.

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