tech
Broadcom earnings are out after market close. What top analysts are expecting
Analysts from firms including Morgan Stanley, UBS and JPMorgan are notably bullish on Broadcom's TPU business.
TL;DR
- Broadcom's stock has seen significant gains in recent years, driven by demand for its custom AI accelerator chips (ASICs).
- Concerns exist around customer-owned tooling (COT) and potential competition, particularly from Google's partnership with MediaTek.
- Many analysts remain confident in Broadcom's custom chip business, expecting strong demand for Tensor Processing Units (TPUs).
- Firms like Morgan Stanley, UBS, and JPMorgan have bullish ratings and price targets, citing AI product strength and VMware synergy.
- Analysts expect upcoming earnings to meet or exceed consensus estimates, with potential for upside in 2026 and 2027.
- The stock's price-to-earnings (P/E) multiple has compressed, with some analysts believing these risks are largely priced in.