Here’s How Much Traders See Broadcom Stock Moving After Earnings
Broadcom is scheduled to report earnings Wednesday afternoon, with traders expecting the stock to see a big swing following the results.
Sales and profits are seen nearly doubling year-over-year, but worries about competition and an AI bubble have weighed on Broadcom shares lately.
Broadcom is slated to post its latest quarterly results after the closing bell Wednesday, with traders expecting a big move from the chipmaker's stock.
Based on current options pricing, Broadcom (AVGO) shares are seen swinging up to 7% by the end of the week. A move of that size from the stock's recent level around $369 could lift it to $395, or drag it below $343, which would put it back in negative territory for the year.
Broadcom shares have dropped 25% off their June highs in the wake of the company's last quarterly report . Disappointment about the company's decision not to lift its long-term sales forecasts and worries about competition have pressured Broadcom shares , along with AI bubble fears that have weighed on the broader chip sector.
A solid report from Broadcom could help boost sentiment around the chipmaker's stock. Its recent slump has erased much of the gains driven by new deals with Apple, Google, and Anthropic announced earlier this year.
UBS analysts recently wrote that they see "modest" upside to Broadcom's third-quarter sales, but that they are "doubtful that this report will sway the overarching debate on the stock" around Broadcom's competitive position with key customers including Google. The analysts trimmed their price target to $470 from $485.
Broadcom is expected to report fiscal third-quarter revenue of $29.49 billion, an 85% jump year-over-year. Adjusted earnings per share are seen coming in at $3.24, nearly doubling from $1.69 the same time a year ago, per Visible Alpha estimates.
Wall Street analysts have remained bullish on Broadcom amid the stock's recent pullback, with all nine analysts tracked by Visible Alpha holding "buy" or equivalent ratings. Their average price target just under $510 would suggest a close to 40% rise from the stock's recent level.
