Semiconductor manufacturer Broadcom saw its stock rise ahead of its latest earnings report, with analysts optimistic it will exceed expectations. The company is projected to post adjusted earnings of $2.39 per share on $22.13 billion in revenue, a significant increase from the same period last year. Analysts cite strong artificial intelligence demand from hyperscalers like Google and Meta, with AI spending estimated to reach $650 billion this year, as a key driver for Broadcom’s growth.
Shares in Broadcom reached a new intraday high ahead of its earnings report. Wall Street expects adjusted earnings of $2.39 per share on revenue of $22.13 billion.
This compares to earnings of $1.58 per share on $15 billion in revenue a year ago. The custom chipmaker benefits from hyperscaler artificial intelligence spending estimated at $650 billion.
Its customers include Google, Meta, and AI developers Anthropic and OpenAI. The stock has added $300 billion in market cap over the past five sessions.
Broadcom has beaten earnings estimates in recent quarters. It reported $2.05 per share versus estimates of $2.03 last quarter.
For the prior quarter, it delivered a 4.28% surprise with $1.95 per share. Broadcom stock now trades at $479.84.
Analysts at Citi recently raised its price target to $500. City said it models Broadcom’s April-quarter and July-quarter sales and earnings per share modestly above consensus, driven by stronger artificial intelligence demand.
The firm estimates AI revenue will grow to approximately 81% of total sales by fiscal fourth-quarter 2028. Combined Google and Anthropic AI sales are projected to reach around $80 billion.
Total AI sales are estimated at $115 billion in 2027, rising to $180 billion in 2028. This significant growth underscores the company’s positioning in the AI semiconductor market.
