What's Going On With Broadcom Stock Wednesday?

Broadcom Inc AVGO shares are trading higher Wednesday ahead of earnings. Here’s a look at what you need to know.

What To Know: Broadcom is due to report financial results for the second quarter after the market close on Wednesday. The semiconductor company is expected to report earnings of $10.84 per share on revenue of $12.028 billion, according to estimates from Benzinga Pro.

Broadcom has beat EPS estimates in 15 consecutive quarters. The company has also beat revenue estimates in 14 of the last 15 quarters.

Last quarter, Broadcom beat analyst estimates on the top and bottom lines and reiterated full-year guidance targets, including revenue of approximately $50 billion. The company said its acquisition of VMware was accelerating revenue growth in its infrastructure software segment, while strong demand for its networking products in AI data centers was driving growth in its semiconductor segment.

Multiple analysts have weighed in on Broadcom stock this week ahead of earnings. Morgan Stanley reinstated Broadcom with an Overweight and set a price target of $1,658. Citigroup reiterated a Buy rating and price target of $1,560 and Rosenblatt reiterated a Buy and price target of $1,500.

Morgan Stanley believes Broadcom could be one of the strongest AI plays as its growth trajectory outpaces other AI alternatives. The analysts sees strength in AI offsetting headwinds in the company’s legacy business. AI will be in focus after the bell.

Check This Out: How To Earn $500 A Month From Broadcom Stock Ahead Of Q2 Earnings

AVGO Price Action: Broadcom shares were up 2.02% at $1,490.46 at the time of publication, according to Benzinga Pro.

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