Broadcom Shares in Focus as Analysts Revise Targets Ahead of Earnings

Broadcom Inc. is capturing significant analyst attention following reports of a major artificial intelligence agreement. In the days leading up to the company's highly anticipated quarterly report on December 11, two prominent investment banks have raised their price targets for the semiconductor giant, citing a transformative deal with OpenAI.

The series of upgrades commenced on Thursday. Rick Schafer, an analyst at Oppenheimer, lifted his price objective for Broadcom shares from $400 to $435, reiterating an "Outperform" rating. This move was followed on Friday by Bank of America, which set an even more ambitious target of $460 per share.

The rationale behind these adjustments centers on a newly secured, long-term agreement with OpenAI. Analysts estimate this partnership could represent a multi-billion dollar opportunity, potentially exceeding $100 billion over the full lifecycle of the contract. The deal involves supplying custom AI accelerators and networking infrastructure with a capacity of approximately ten gigawatts. Securing OpenAI as a strategic partner, in addition to its existing work supplying Google with TPUs, signals strong momentum for Broadcom's custom silicon division.

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

High Stakes Ahead of the Quarterly Release

These bullish revisions arrive at a critical juncture. Broadcom is scheduled to disclose its fourth-quarter and full fiscal year 2025 results on December 11. Market consensus points to earnings per share of around $1.87. However, investor focus will be squarely on management's guidance for fiscal 2026 and, more specifically, on the anticipated revenue timeline from the OpenAI partnership.

The company previously reported year-over-year AI revenue growth exceeding 60% for its third quarter. CEO Hock Tan's strategy of cultivating deep partnerships with major cloud providers continues to deliver results. Despite this, the equity has been trading sideways near $380, slightly below its yearly highs, as the market awaits confirmation that AI-related enthusiasm will translate into tangible cash flows.

Technical Position and Forward Outlook

From a technical perspective, Broadcom's stock is maintaining support above the $375 level. A strong earnings report coupled with an optimistic forecast on Wednesday could provide the catalyst for a move toward the newly established analyst targets of $435 and $460. The clarity provided by management regarding the revenue recognition schedule for the OpenAI deal will be paramount. Should details remain vague, the shares may continue to trade in a consolidation pattern in the near term.