Broadcom Set to Release Q1 FY25 Earnings Amid AI Optimism

IRVINE, Calif. — Broadcom Inc. is poised to announce its first quarter Fiscal Year 2025 results on March 6, after the market closes. Analysts predict the technology company will report significant growth in both earnings and revenue, fueled by advancements in artificial intelligence.

Currently, Wall Street estimates that Broadcom, which specializes in semiconductors and enterprise software, will achieve earnings per share of $1.51, accompanied by a 22.2% increase in revenue to $14.62 billion. These expectations are based on robust demand in infrastructure software resulting from Broadcom’s integration of VMware, as well as strengthened performance in its semiconductor segment.

Despite its strong fundamentals, AVGO stock has declined 19% in 2025, impacted by global concerns over trade tariffs with China and other export restrictions on chips. Analysts, however, remain optimistic about the company’s financial prospects.

C.J. Muse, a Cantor Fitzgerald analyst, has reiterated a Buy rating for Broadcom, setting a price target of $300. He anticipates a modest earnings beat for the first quarter and a stable outlook for the following quarter, attributing expected improvements to both the AI and non-AI sectors. Muse forecasts that FY25 and FY26 AI revenues could reach $17.8 billion and $24 billion, driven by demand for Custom Silicon technology.

“Broadcom continues to be a leader in AI innovation, looking to capture a significant share of the AI serviceable addressable market, estimated between $60 billion and $90 billion in FY27,” Muse stated.

Similarly, Christopher Rolland, an analyst from Susquehanna, also remains bullish on Broadcom, lifting his price target from $225 to $250. Rolland forecasts results that will likely exceed moderate expectations, aided by ongoing AI-powered growth and optimization strategies for the VMware portfolio.

“Our demand checks suggest a favorable outlook, especially among hyperscalers who are increasing investments in AI technology,” Rolland noted, while also expressing concerns that Apple may launch its own Wi-Fi/Bluetooth chip, which could affect Broadcom’s market share.

In the options market, expectations are high for Broadcom’s upcoming earnings report, with traders anticipating significant movements in the stock price. According to TipRanks’ Options tool, the stock may react strongly after the announcement.

As analysts project a 29.4% potential upside from current levels, Broadcom maintains a Strong Buy consensus rating based on 23 Buy and two Hold recommendations among analysts. Investors will be closely monitoring the company’s performance in light of the evolving global market dynamics.