Broadcom Earnings Preview: AI Surge Meets Valuation Risks Ahead of Report
The post Broadcom Earnings Preview: AI Surge Meets Valuation Risks Ahead of Report appeared on BitcoinEthereumNews.com.
Broadcom’s Q4 2024 earnings, due after market close on Thursday, are expected to show robust growth driven by surging AI demand, with adjusted EPS projected at $1.87 and revenue at $17.5 billion, up significantly from last year. However, the stock’s high valuation raises concerns about potential post-earnings pullback. Broadcom’s stock has surged over 180% since April, fueled by AI chip demand from major tech firms. AI segment revenue is forecasted to reach $6.2 billion, a 68% increase year-over-year. Trading at 42 times forward earnings, the stock exceeds its 10-year average of 17 times, signaling potential overvaluation risks. Broadcom earnings report highlights AI-driven growth amid high expectations. Discover key projections, expert insights, and valuation concerns for investors in this pivotal quarter. Stay informed on semiconductor trends shaping tech markets. What to Expect from Broadcom’s Q4 2024 Earnings? Broadcom earnings for the fiscal fourth quarter ending October 31, 2024, are anticipated to reflect strong performance propelled by artificial intelligence applications. Analysts forecast adjusted earnings per share of $1.87, a notable rise from $1.42 in the prior year, alongside revenue climbing to approximately $17.5 billion compared to $14.1 billion last year. This growth underscores Broadcom’s pivotal role in supplying AI accelerators to hyperscale data centers operated by leading technology companies. How Is AI Demand Impacting Broadcom’s Revenue Growth? The AI sector has become a cornerstone of Broadcom’s business, with projections indicating $6.2 billion in revenue from this segment alone, representing a 68% year-over-year increase. This surge is attributed to heightened demand for custom AI chips, particularly from partnerships with entities like Google, where Broadcom’s technology supports advanced models such as Gemini 3. Expert Shaon Baqui from Janus Henderson Investors notes, “Expectations here are obviously elevated given the recent performance, but for good reason—they’re significantly levered to the Google ecosystem.” Supporting data from Wall…
Filed under: News - @ December 11, 2025 8:29 pm