Semiconductor and enterprise software and security solutions provider Broadcom (AVGO) is scheduled to announce its results for the first quarter of Fiscal 2025 after the market closes on Thursday, March 6. AVGO stock is down 19% so far in 2025 due to concerns over tariff wars with China and other countries and chip export restrictions. Wall Street expects Broadcom to report a more than 37% year-over-year jump in Q1 FY25 EPS (earnings per share) to $1.51.
Further, revenue is expected to rise 22.2% to $14.62 billion. Broadcom’s top line is expected to gain from higher infrastructure software revenue due to the successful integration of VMware and solid semiconductor business, driven by the demand for the company’s AI custom accelerators (XPUs) and Ethernet networking portfolio. It is worth noting that Broadcom has exceeded Wall Street’s earnings estimates in each of the quarters of the past three fiscal years.
Analysts’ Views on AVGO Stock Ahead of Q1 FY25 Earnings
Heading into the Q1 FY25 earnings, Cantor Fitzgerald analyst C.J. Muse reiterated a Buy rating on Broadcom stock with a price target of $300. Muse expects the company to deliver a modest beat for Q1 FY25 and an in-line outlook for the April quarter. The analyst thinks that normal wireless seasonality and flattish trends across Custom Silicon will be largely offset by improved AI/non-AI networking business.
Muse expects management to maintain its positive outlook for AI revenues. The analyst estimates FY25 and FY26 AI revenues of $17.8 billion and $24 billion, respectively, fueled by major “step-ups” in Custom Silicon and continued growth in AI Networking and Storage. Overall, Muse believes that Broadcom remains an AI powerhouse as it moves towards winning a significant market share within its $60 billion to $90 billion AI SAM (Serviceable Addressable Market) in FY27 across both Compute and Networking.
Meanwhile, Susquehanna analyst Christopher Rolland reiterated a Buy rating on Broadcom stock and raised the price target to $250 from $225. Rolland expects the company to report “generally in line to slightly better results/guidance,” fueled by continued AI-led growth and optimization of the VMware portfolio. The five-star analyst added that demand checks by his firm were favorable, as hyperscalers continue to boost AI investments despite DeepSeek fears, with the Stargate project offering additional upside. However, the analyst noted concerns about Apple (AAPL) developing an in-house Wi-Fi/BT (Bluetooth) chip that could replace Broadcom’s offering as soon as the upcoming iPhone 17.
Options Traders Anticipate Major Move on Broadcom’s Q1 Earnings
Using TipRanks’ Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don’t worry, the Options tool does this for you.
Indeed, it currently says that options traders are expecting about 10% move in either direction in reaction to Broadcom’s Q1 results.
Is AVGO Stock a Good Buy Now?
Ahead of Broadcom’s upcoming Q1 FY25 results, Wall Street is highly bullish on Broadcom stock. AVGO stock scores a Strong Buy consensus rating on TipRanks based on 23 Buys and two Holds. The average Broadcom stock price target implies about 29.4% upside potential from current levels.
