Broadcom Positioned for Q4 Upside on AI, Networking Strength, Oppenheimer Says

MT Newswires Live12-06 03:58

Broadcom (AVGO) is positioned for upside in fiscal Q4 and the January quarter, supported by strength in its artificial intelligence compute and networking franchises as well as broader semiconductor, wireless, and software operations, Oppenheimer said in an earnings preview.

The company is scheduled to report its fiscal Q4 results on Dec. 11.

The investment firm said in a Thursday note that semiconductor sales are expected to rise about 19% quarter-on-quarter in fiscal Q4, with AI making up roughly 58% of the semiconductor mix of approximately $6.3 billion. Non-AI semiconductor and software segments are also expected to contribute to growth.

Next-generation Tomahawk6 volumes should further boost revenue and gross margins next year, according to the research note.

The firm modeled free cash flow of $32 billion for calendar 2025 and $45 billion for 2026, with roughly half of 2025 FCF expected to be returned to shareholders via dividends in fiscal 2026.

Oppenheimer raised its price target on Broadcom to $435 from $400, while reiterating an outperform rating.

Shares of Broadcom were up more than 2% in recent Friday trading.

Price: 389.13, Change: +8.10, Percent Change: +2.12

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment