- Broadcom stock hit a new intraday high ahead of its earnings report, with analysts expecting it to beat Wall Street estimates of $2.39 per share on $22.13 billion in revenue.
- The company is poised to benefit from massive hyperscaler AI spending, estimated to reach $650 billion, with key customers including Google, Meta, Anthropic, and OpenAI.
- Citi analysts raised their price target to $500, modeling AI revenue to grow from 49% of total sales to roughly 81% by fiscal Q4 2028, potentially hitting $180 billion.
Shares in semiconductor giant Broadcom surged to a new intraday high on Wednesday as investors anticipated a strong earnings report. Analysts are optimistic the company will surpass expectations for the quarter.
Consequently, Wall Street expects adjusted earnings of $2.39 per share on revenue of $22.13 billion, a significant jump from $1.58 per share on $15 billion a year ago. The stock’s recent rally has added a staggering $300 billion in market cap over just five sessions.
Meanwhile, the custom chipmaker is a major beneficiary of soaring hyperscaler Artificial Intelligence investment. This sector’s spending is estimated to reach $650 billion this year, according to reports.
Specifically, Citi recently raised its price target to $500, highlighting expectations for significant revenue growth. The bank models sales and earnings modestly above consensus for the upcoming quarters, driven by stronger AI demand.
For context, Broadcom has a history of beating estimates, delivering a 4.28% surprise last quarter. The stock now trades at $479.84, which is 38 times 2026 estimates.
Ultimately, Citi projects AI revenue will grow from roughly 49% of total sales to approximately 81% by fiscal fourth-quarter 2028. Combined Google and Anthropic AI sales are projected to reach around $80 billion, with total AI sales hitting $115 billion in 2027.
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