Why Broadcom Stock Is Still a Buy After Earnings
Broadcom stock is sinking Friday after the chipmaker's outlook fell short, but Wall Street remains bullish. Here's what they're saying.


Broadcom (AVGO) stock is sinking Friday after the chipmaker beat top- and bottom-line expectations for its fiscal third quarter but issued an outlook for the fourth quarter that came up short of expectations.
In the quarter ended August 4, Broadcom's revenue increased 47.3% year-over-year to $13.1 billion, thanks in part to a nearly tripling in revenue for its infrastructure software segment to $5.8 billion. The company said earnings per share (EPS) were up 18.1% from the year-ago period to $1.24.
"Broadcom's third-quarter results reflect continued strength in our artificial intelligence (AI) semiconductor solutions and VMware," said Broadcom CEO Hock Tan in a statement. "We expect revenue from AI to be $12 billion for fiscal year 2024 driven by Ethernet networking and custom accelerators for AI data centers."
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.

Sign up for Kiplinger’s Free 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 came in ahead of analysts' expectations. Wall Street was anticipating revenue of $13 billion and earnings of $1.20 per share, according to CNBC.
However, sentiment turned negative toward the semiconductor stock after Broadcom provided its outlook on the fourth quarter. The company anticipates revenue of approximately $14 billion, which was just short of Wall Street's forecast for $14.04 billion. Still, the company's $14 billion forecast represents an increase of about 51% from the year-ago period.
Is Broadcom stock a buy, sell or hold?
Heading into Friday's session, Broadcom was up nearly 38% for the year to date. Unsurprisingly, Wall Street is very bullish on AVGO.
According to S&P Global Market Intelligence, the consensus analyst target price for the tech stock is $192.71, representing implied upside of 40% to current levels. Additionally, the consensus recommendation is Strong Buy.
Financial services firm Oppenheimer is one of the more bullish outfits on AVGO stock with an Outperform rating (equivalent to a Buy) and $200 price target.
"We believe AVGO has one of the most strategically and financially attractive business models in semiconductors," says Oppenheimer analyst Rick Schafer, citing its strong competitive edge in the high-end filter market, its diversified and "sticky" non-mobile business, its manufacturing advantage and its strong earnings and cash flow growth.
Schafer adds that Broadcom remains a top AI play after Nvidia (NVDA) as its data center AI networking and custom compute portfolio support "snowballing AI growth."
Related Content
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.
-
Don't Toss It! Why Your Medicare Annual Notice of Change Matters
If you have Medicare Part D or a Medicare Advantage plan, reviewing your Annual Notice of Change is crucial. It can save you money and ensure you can still see your preferred doctors and hospitals.
-
S&P 500 Hits New High After Oracle Earnings: Stock Market Today
Another down day for Apple held the Dow Jones Industrial Average back, though.
-
S&P 500 Hits New High After Oracle Earnings: Stock Market Today
Another down day for Apple held the Dow Jones Industrial Average back, though.
-
StubHub IPO: Should You Buy STUB Stock?
The highly anticipated StubHub IPO is right on our doorstep, with the online ticket marketplace expected to start trading later this month.
-
What Your Portfolio Says About You – and Your Relationship with Risk
How well do you understand yourself and your risk tolerance? Being able to answer this question will help you become a better investor.
-
Answers to Every Early Retiree's Questions This Year, From a Wealth Adviser
From how to retire in a crazy market to how much to withdraw and how to spend without feeling guilty, a financial pro shares the advice he's given this year.
-
The Risks of Forced DST-to-UPREIT Conversions, From a Real Estate Expert
Some new Delaware statutory trust offerings are forcing investors into 721 UPREIT conversions at the end of the hold period, raising concerns about loss of control, limited liquidity, opaque valuations and unexpected tax liabilities.
-
Stocks Grind Up to New All-Time Highs: Stock Market Today
UnitedHealth stock led the Dow Jones Industrial Average amid increasing signs the labor market has not been well for months.
-
The 'Nothing Ever Happens' Market: How Stocks React (Or Don't) to Geopolitical Events
Geopolitical events – terrorist acts, wars or military intervention – can give stocks a jolt. But that doesn't mean your portfolio will take a long-term hit.
-
I'm a Financial Adviser: You've Built Your Wealth, Now Make Sure Your Family Keeps It
The Great Wealth Transfer is well underway, yet too many families aren't ready. Here's how to bridge the generation gap that could threaten your legacy.