Broadcom (AVGO) Stock: Buy Before Earnings? The Crypto Infrastructure Play You’re Missing

Earnings day looms. For Broadcom, it's not just another quarterly report—it's a referendum on the silicon backbone of the AI and crypto revolution.

The Hidden Engine of Digital Finance

While traders obsess over flashy token charts, Broadcom's chips are the unglamorous workhorses powering the data centers that make it all possible. Its networking and custom AI accelerator solutions sit at the core of the infrastructure boom. No speculative asset here—just the picks and shovels.

Catalysts Beyond the Hype Cycle

The VMware integration remains a massive, multi-quarter story. Success here means locking in enterprise clients and building a software-defined empire. Meanwhile, its custom silicon division feeds the insatiable demand from hyperscalers—the same giants pouring billions into blockchain and AI compute. It's a bet on the plumbing, not the water.

The Risk No One Talks About

Sure, valuation looks rich. The stock trades like a growth darling, but one earnings miss from a key client—or a slowdown in data center spending—could trigger a painful re-rate. Wall Street's love affair with anything 'infrastructure' has a short memory when growth slows. Remember, in finance, a 'long-term strategic hold' is often just a polite term for a losing trade you're too stubborn to sell.

So, buy before earnings? It's a gamble on the continued digitization of everything. If you believe the future requires more data, more AI, and yes, more blockchain—then Broadcom isn't just a stock. It's a stake in the grid.

TLDR

• Broadcom reports fiscal Q4 earnings after market close on December 11, with analysts expecting revenue of $17.5 billion and adjusted EPS of $1.87
• The stock has surged nearly 76% year-to-date, crushing the Nasdaq’s 23% gain over the same period
• CEO Hock Tan announced $10 billion in AI chip orders from a new customer in September, boosting the fiscal 2026 revenue outlook
• Morgan Stanley raised its price target to $443 and expects Broadcom’s AI processor revenue to grow faster than Nvidia’s in 2026
• Options traders are pricing in a 7% stock move in either direction following the earnings release

Broadcom will report its fiscal fourth-quarter earnings after the closing bell today. Wall Street expects the company to deliver revenue of $17.5 billion and adjusted earnings per share of $1.87.

Broadcom Inc., AVGO

For the current quarter, analysts project revenue of $18.4 billion and earnings per share of $1.97. The company has beaten earnings estimates for 16 straight quarters.

Broadcom shares have climbed nearly 76% in 2025. That performance crushes the Nasdaq Composite’s 23% gain over the same timeframe.

The semiconductor company competes across multiple chip categories. These include networking, broadband, server storage, wireless, and industrial applications.

Broadcom also leads in the market for high-end AI application-specific integrated circuits, known as AI ASICs. The company helps major tech firms design custom chips for artificial intelligence workloads.

Analysts Bullish on AI Chip Momentum

J.P. Morgan analyst Harlan Sur maintained his Overweight rating on Sunday. He kept his $400 price target intact and expects strong demand for Broadcom’s AI products to continue.

Sur believes the October quarter results will exceed both his estimates and consensus expectations. He specifically pointed to revenue, earnings, and free cash FLOW as likely beat categories.

Morgan Stanley recently raised its price target from $409 to $443 while keeping a Buy rating. Analyst Joseph Moore expects Broadcom to grow its AI processor revenues slightly faster than Nvidia in 2026.

Moore noted that Nvidia faces supply constraints that could benefit Broadcom. Many key Nvidia products will remain supply-limited through 2026, according to the firm.

Customers are particularly concerned about securing enough Nvidia hardware. The Vera Rubin chip remains in high demand, though Google’s TPU has emerged as a capable alternative.

Bank of America analyst Vivek Arya also raised his price target to $460 from $400. He maintained a Buy rating on the stock.

Google’s TPU Success Boosts Broadcom Outlook

Arya pointed to Google’s successful launch of its Gemini 3 AI model as a positive signal. The model was trained entirely on TPUs, demonstrating growing adoption of the technology.

Broadcom serves as a key design partner for TPU development. Arya expects TPU production to jump from 2 million units in 2025 to over 3 million in 2026.

Production could potentially reach 3.8 million units in 2026. This increase in TPU usage positions Broadcom to capture more AI hardware market share.

In September, CEO Hock Tan revealed the company secured $10 billion in AI orders from a new qualified customer. He said this WOULD improve the AI revenue outlook for fiscal 2026.

Options traders are pricing in movement following the earnings report. The at-the-money straddle suggests expectations for a 7% MOVE in either direction.

The average price target sits at $436.33 per share. This implies 5.7% upside potential from current levels.