Market momentum is building for Broadcom Inc. as it approaches its upcoming quarterly earnings report. The stock, trading within striking distance of its 52-week high, is being propelled by a confluence of optimistic analyst commentary and a significant market rumor. Investors are now weighing whether the company’s ambitious valuation is justified by its growing role in the artificial intelligence revolution.
Earnings Report Looms with High Expectations
All eyes are on Thursday, December 11, 2025, when Broadcom is scheduled to release its fourth-quarter financial results after the U.S. market closes. The consensus among market watchers sets a high bar, anticipating revenue growth of approximately 24.5% to reach $17.5 billion. Particular focus will be on the AI segment, where a remarkable 66% year-over-year surge is expected.
The market will scrutinize management’s commentary for two key signals: an upward revision to the forecast for the addressable AI market and confirmation of new customer wins for its custom AI chips, beyond its established partnerships.
Rumor of Strategic Chip Shift Fuels Rally
A report from The Information at the start of the week provided a substantial catalyst. According to the publication, Microsoft is in discussions to shift the development of its custom-designed chips from Marvell Technology to Broadcom. Such a move would carry major strategic weight, positioning Broadcom as a central partner for the software giant’s future AI processors. These chips are destined for critical applications, including powering Microsoft’s Azure cloud platform.
Should investors sell immediately? Or is it worth buying Broadcom?
The market reaction was immediate and divergent. While Marvell Technology shares faced pressure, the potential talks were interpreted by observers as a powerful endorsement of Broadcom’s leading expertise in the custom silicon solutions space.
Analyst Community Raises Price Targets
This positive sentiment is being reinforced by a wave of upgraded assessments from major financial institutions:
- Bank of America analysts highlighted Broadcom’s expanding role within the ecosystem of Google’s Tensor Processing Units (TPUs). Their research suggests the average selling prices per unit could see significant increases by 2026.
- Morgan Stanley, following checks within Asian supply chains, identified strengthening AI demand. The firm projects that Broadcom’s revenue from AI chips could grow at a faster pace than Nvidia’s by 2026.
- Cantor Fitzgerald maintains one of the most bullish price targets on Wall Street, betting on a continuation of the stock’s current positive momentum.
Valuation Demands a Strong Performance
The upcoming earnings report represents a critical test. Given a valuation that trades at 41 times expected earnings—a significant premium to its historical average—there is little room for disappointment. To sustainably support the current share price, Broadcom will likely need to not only meet consensus estimates but also provide a robust outlook for the first quarter of 2026.
Key Financial Data
- Current Share Price: €345.80
- Daily Change: -0.04%
- Previous Friday’s Close: €335.00
- 7-Day Change: +3.97%
- 30-Day Change: +15.02%
- Year-to-Date (YTD) Change: +52.98%
- 12-Month Change: +103.89%
- 52-Week High: €347.95 (November 28, 2025)
- Distance from 52-Week High: -0.62%
- 52-Week Low: €133.70 (April 4, 2025)
- Distance from 52-Week Low: +158.64%
- 50-Day Moving Average: €311.73
- Distance from 50-Day MA: +10.93%
- 100-Day Moving Average: €292.48
- 200-Day Moving Average: €245.36
- Distance from 200-Day MA: +40.93%
- RSI (14-Day): 42.0
- Volatility (30-Day, Annualized): 45.80%
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