Broadcom (AVGO) Stock: Buy Before Q4 Earnings Drop on December 11?

Earnings season is a high-stakes poker game, and Broadcom is about to show its hand.

The chip giant reports Q4 results on December 11, putting its stock—and investor sentiment—under the microscope. With markets hanging on every data point, the pre-earnings whisper number is all about guidance.

The AI Infrastructure Play

Forget legacy hardware. Broadcom’s narrative now orbits around its custom AI accelerators and networking silicon. Demand from hyperscalers building out data centers isn't just a tailwind—it's a hurricane. The question isn't if revenue grew, but by how much it smashed expectations.

Software's Steady Cash Flow

Then there's the VMware engine. That massive software acquisition wasn't just for show—it's a recurring revenue machine. Integration pains are old news; the Street wants to see margins holding firm and cross-sell opportunities materializing. It's the boring, predictable cash that funds the sexy AI bets.

The Valuation Tightrope

Here's the rub: the stock already prices in perfection. A miss on guidance, even by a hair, could trigger a swift re-rating. Analysts love to talk about 'long-term secular trends' right up until the short-term numbers disappoint. Buying now is a pure momentum bet on management's ability to, once again, tell a story the market wants to hear.

The setup is classic: huge potential, priced for a best-case scenario. December 11 tells us if the story still has chapters left, or if it's time for the market to find a new favorite—until next quarter, of course. After all, in finance, conviction lasts exactly as long as the last earnings call.

TLDR

• Broadcom reports fiscal Q4 2025 earnings on December 11, with analysts expecting EPS of $1.87 and revenue of $17.5 billion
• Stock has jumped 68% in 2025, driven by AI partnerships and custom chip demand from Google, Meta, and Apple
• Microsoft reportedly shifting custom chip development from Marvell to Broadcom for Azure AI chips
• Analysts predict Broadcom’s AI chip revenue could grow faster than Nvidia’s in 2026
• Wall Street maintains Strong Buy rating with 23 Buy ratings and average price target of $425.13

Broadcom stock sits at a crossroads as investors wait for fiscal fourth-quarter earnings on December 11. The semiconductor company has posted a 68% gain this year, fueled by AI partnerships and rising demand for its custom chips.

Broadcom Inc., AVGO

Analysts expect earnings of $1.87 per share, up 32% year-over-year. Revenue projections stand at $17.5 billion, marking 24% annual growth.

The AI chip business has become the main driver for Broadcom’s valuation. The company designs custom chips for tech giants including Google, Meta, and Apple. These application-specific integrated circuits handle AI training and inference workloads.

Microsoft is reportedly moving its custom chip development to Broadcom from Marvell. The shift WOULD position Broadcom as a key partner for Microsoft’s future AI chips used across Azure. This adds to the company’s growing roster of hyperscale clients.

Google TPU Partnership Drives Growth

Google’s Trillium TPU, designed with Broadcom, has generated strong interest in recent weeks. Google trained its Gemini 3 model entirely on these chips. The model currently leads the market in performance.

Google is also working on a deal to rent TPU capacity and sell TPU chips to Meta. This expansion could drive higher shipments for Broadcom and attract more custom chip customers.

Mizuho analyst Vijay Rakesh maintained his Outperform rating with a $435 price target. His supply chain checks show steady TPU demand from Google as it expands Gemini 3 usage. Rising AI workloads at Meta, Apple, and Anthropic should support stronger revenue through 2026.

Analyst Targets Point Higher

Morgan Stanley analyst Joseph Moore raised his price target after checks in Asia revealed stronger AI demand. The analyst expects Broadcom’s AI chip revenue to outpace Nvidia’s growth in 2026, backed by robust TPU supply chain trends.

Morningstar values Broadcom at $365 per share with a 3-star rating. The firm expects AI revenue to double to $40 billion in fiscal 2026. This projection assumes continued strength in custom chip shipments to major cloud providers.

The company holds a wide economic moat from its chip design capabilities and software switching costs. Broadcom generates free cash FLOW margins above 40%. It produced $30 billion in free cash flow in fiscal 2025.

Broadcom carries $68 billion in gross debt, with half from the VMware acquisition. The company reduced its debt-to-EBITDA ratio from 3.5 times to 2.1 times over the past year. Cash and equivalents total $9 billion.

Broadcom’s networking and wireless chip businesses serve Apple, Google, Cisco, and Arista. The company also operates software divisions focused on virtualization and mainframe technology. Analysts will watch for fiscal 2026 guidance when the company reports results on December 11.