Broadcom stock reports third-quarter results after Wednesday’s close and has climbed 4% from last week’s low to $370.34.
Wall Street rates it a Strong Buy, with 25 buy ratings, three holds, and no sells, despite a major money flow warning.
Broadcom shares still sit 23% below the record they set on June 2, up 7% this year, compared with 63% for the PHLX Semiconductor Index.
What Wall Street Expects From the Stock
This is the season’s last big AI print, after 36 analysts backed Nvidia into its own results.
Analysts expect $29.241 billion of revenue and $3.215 in adjusted earnings.
One number undercuts the rest. In June, Broadcom told investors in its own second-quarter filing that it would make about $29.4 billion this quarter. Analysts are forecasting slightly less than the company promised.
That is the weak signal. Broadcom has beaten its own numbers eight quarters in a row, so analysts would normally forecast above the guide. This time they sit below it.
The growth explains why. Almost all of it now comes from AI chips, which earn Broadcom far less than its software business does.
AI will account for $16 billion of this quarter’s sales, 54% of the total, up from 49% last quarter, including OpenAI’s first custom processor.
Broadcom told investors it will still earn 67 cents of profit on every dollar of sales, the same as last quarter, while revenue jumps 84%. The company is getting much bigger without getting any more profitable.
Broadcom Earnings Reaction Record: BeInCrypto
Even beating has not helped before. TipRanks data shows AVGO stock topping estimates every quarter since 2024 yet falling the next day four times, with an average move of 10.53% and a spread from a 13.01% fall to a 22.71% gain.
The reason sits in the ownership data.
Why Money Is Leaving AVGO Stock
TipRanks scores blogger sentiment at 83% bullish and news sentiment at 0.89 out of one. Yet its best-performing investors cut Broadcom exposure 2.37% over 30 days and 3.06% in the last seven. The selling is speeding up.
This is not only a Broadcom story. Chaikin Money Flow, a proxy for whether institutional money is entering or leaving a stock, is negative on 10 of 14 major chip names.
The four still positive sit outside AI compute. The five worst all build AI accelerators, the same rotation that pulled smart money out of Nvidia, in a year when Wall Street kept choosing between chip names.
AVGO stock sits last among those 14, at -0.225.
Broadcom Stock Price Levels to Watch
Broadcom shares have fallen inside a descending channel since June 3. Buying volume only improved on August 27.
Confirmation needs a daily close above $376.28, then $398.34 to come close to leaving the channel. One widely followed chart account says Broadcom needs a bigger bounce to match Nvidia and TSMC.
Failure is faster. Losing $356.62 opens $344.46, and a break of $334.62 exposes $324.79.
Analyst’s View: Broadcom stock is showing mixed trends heading into Wednesday’s earnings. Almost every analysts call this a bullish stock, but the biggest shareholders are slowly selling. The chart has not picked a side either. That is why the reaction to the earnings could matter more than the numbers.
The post 28 Analysts Share Their Broadcom Stock Forecast Before Q3 Earnings appeared first on BeInCrypto.
