Broadcom Shares: A Critical Juncture Ahead of Earnings

Investors are positioning themselves for a pivotal moment for Broadcom Inc. The semiconductor and software giant is set to release its fourth-quarter earnings on Thursday, December 11, against a backdrop of soaring analyst expectations driven by explosive demand for its artificial intelligence (AI) chips. The central question for the market is whether the company can meet these heightened forecasts or risk a disappointing reversal.

All eyes are on the upcoming financial results. For the fiscal fourth quarter concluding in late November, Wall Street consensus estimates project revenue of $17.46 billion and earnings per share of $1.87. This follows a strong third-quarter performance where Broadcom posted revenue of $15.95 billion—a 22% year-over-year increase—and EPS of $1.69, surpassing expectations at the time.

The AI segment remains the critical growth engine under scrutiny. It surged by 63% to $5.2 billion in the previous quarter. Market participants will be keenly watching the December report to see if this extraordinary momentum can be sustained. The overall analyst sentiment is overwhelmingly positive, with a consensus showing 28 "buy" ratings compared to just 2 neutral "hold" recommendations. The average price target sits near $410, though recent revisions suggest significantly more upside potential.

Surging Analyst Conviction and Price Targets

A wave of bullish analyst activity has preceded the earnings announcement. Bank of America made a notable move this week, with strategist Vivek Arya raising his price objective from $400 to a substantial $460 while reiterating a "buy" rating. The upgrade is rooted in robust demand for custom AI chips, highlighted by Broadcom's partnership with Alphabet. BofA's projections indicate average selling prices of $5,000 to $6,000 per Tensor Processing Unit (TPU) in 2025, with volume reaching approximately 2 million units.

Should investors sell immediately? Or is it worth buying Broadcom?

The forecast for 2026 is even more striking: prices could more than double to a range of $12,000 to $15,000 per unit, while shipment volumes are expected to exceed 3 million. This optimism was echoed by UBS Group, which on December 1 set the highest target on the Street at $472. Morgan Stanley also increased its target, bringing it to $443.

Institutional Investors Build Positions

The "smart money" cohort of institutional investors has been actively accumulating shares, signaling strong fundamental confidence. EverSource Wealth Advisors expanded its holding by 8.2% during the second quarter of 2025, bringing the total value of its position to around $26 million. Norway's sovereign wealth fund, Norges Bank, initiated a new position, while heavyweight firms including Vanguard and Geode Capital Management increased their existing stakes.

Operational developments support this institutional faith. On December 2, Broadcom announced that ING Bank in the Netherlands selected the VMware Cloud Foundation 9.0 as its private cloud platform. This deal serves as tangible evidence that the company's software segment, bolstered by the VMware acquisition, is gaining meaningful traction.

Technical and Market Context

Broadcom's stock, currently trading at $326.85, is positioned above its 50-day moving average, indicating a technically intact upward trend. A decisive breakout above the $347 resistance level could potentially pave the way toward the more ambitious price targets set by analysts. The week of December 11 is poised to determine if the current optimism is warranted or if expectations have overshot reality.