Broadcom Stock Is the Best S&P 500 Stock After Earnings
Broadcom stock is soaring Friday after the chipmaker beat earnings expectations for its most recent quarter, fueled by AI demand. Here's what you need to know.


Broadcom (AVGO) is the best S&P 500 stock Friday, surging more than 20% out of the gate, after the chipmaker beat earnings expectations for its fiscal 2024 fourth quarter and issued a better-than-expected revenue outlook for its fiscal 2025 first quarter.
In the three months ending November 3, Broadcom's revenue increased 51.2% year over year to $14.05 billion, boosted by 220% growth in artificial intelligence (AI) revenue. Its earnings per share (EPS) rose 27.9% from the year-ago period to $1.42.
"Broadcom's fiscal year 2024 revenue grew 44% year over year to a record $51.6 billion, as infrastructure software revenue grew to $21.5 billion, on the successful integration of VMware," said CEO Hock Tan in a statement. "Semiconductor revenue was a record $30.1 billion driven by AI revenue of $12.2 billion. AI revenue, which grew 220 percent year on year, was driven by our leading AI XPUs and Ethernet networking portfolio."

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The results were mixed compared with analysts' expectations. Wall Street was anticipating revenue of $14.1 billion and earnings of $1.38 per share, according to CNBC.
For the first quarter of fiscal 2025, Broadcom expects to achieve revenue of approximately $14.6 billion, just ahead of analysts' expectations for $14.57 billion in sales.
The company also hiked its quarterly dividend by 11% to 59 cents per share. Broadcom is one of the best dividend stocks for dependable dividend growth, having increased its annual payout for 14 years straight.
Is Broadcom stock a buy, sell or hold?
Broadcom has been a standout in 2024, up 64% on a total return basis (price change plus dividends) for the year to date through the December 12 close. Unsurprisingly, Wall Street is very bullish on the semiconductor stock.
According to S&P Global Market Intelligence, the consensus recommendation among analysts it tracks is a Strong Buy.
However, analysts' price targets have failed to keep up with the stock's sizzling run. Indeed, the average price target of $213.05 represents a discount to current levels. This could prompt price-target hikes in the wake of Broadcom's well-received earnings report.
Financial services firm Truist Securities is one of those that hiked its target price on the tech stock after earnings, to $245 from $205, while maintaining its Buy rating.
"We expect AVGO's diversified semiconductor and software franchises to deliver strong sales growth through a cycle, potentially faster with its newfound AI exposure," says Truist Securities analyst William Stein. "Combining this with margin expansion and capital allocation (stock buybacks and acquisitions) should drive double-digit growth in free cash flow and dividends per share."
Related Content
- Best AI Stocks to Buy: Smart Artificial Intelligence Investments
- Alphabet Stock Jumps on Google's Quantum Computing Chip
- Analysts' Top S&P 500 Stocks to Buy Now
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Joey Solitro is a freelance financial journalist at Kiplinger with more than a decade of experience. A longtime equity analyst, Joey has covered a range of industries for media outlets including The Motley Fool, Seeking Alpha, Market Realist, and TipRanks. Joey holds a bachelor's degree in business administration.
-
Gen X? Challenges Lie Ahead as Retirement Nears
Tapping home equity and working longer are key strategies that can help overcome a savings shortfall.
-
How Grandparents Can Help with Education Expenses
Before paying for your grandkids' education, it's important to consider how to help them without risking your own retirement. Here are 10 things to think about.
-
I'm a Financial Pro: Why You Shouldn't Put All Your Eggs in the Company Stock Basket
Limit exposure to your employer's stock, sell it periodically and maintain portfolio diversification to protect your wealth from unexpected events.
-
How Will the One Big Beautiful Bill Shape Your Legacy?
The One Big Beautiful Bill Act removes uncertainty over tax brackets and estate tax. Families should take time to review estate plans to take full advantage.
-
Nvidia Earnings: Live Updates and Commentary August 2025
Nvidia's earnings event is just days away, and market participants are zeroed in on the AI bellwether's quarterly results.
-
Should You Claim Social Security Early or Late? A Financial Adviser Weighs In
There isn't a wrong age to start claiming Social Security, but there are factors that everyone should consider to avoid leaving money on the table.
-
Three Things Financially Confident People Do, From a Pro Who Knows
If you have any worries about your retirement future, take back control with these three tips.
-
How Much Do I Need to Retire? A Financial Professional Breaks Down Your Options
What it all boils down to is will you be comfortable in retirement? Some people may rely on formulas, while others just aim for $1 million nest egg.
-
Despite Our Grumbles, America Still Delivers on the Dream: Perspective From a Financial Pro Who's Seen Stuff
Some of us might complain about the state of our nation (and those concerns are legit), but America still offers unparalleled opportunities and mobility that many people around the world only dream about.
-
Dow Rips 846 Points to New All-Time High: Stock Market Today
Fed Chair Jerome Powell seems ready to cut interest rates in the fall but will still rely on incoming economic data about inflation and employment.