Broadcom Inc (NASDAQ:AVGO) shares are dipping on Thursday. The company is set to release its fiscal fourth‑quarter earnings results after the market close.
- Broadcom stock is showing weakness. Why are AVGO shares declining?
What To Know: Analysts are forecasting Broadcom to report earnings of $1.86 per share, up from $1.42 per share in the same quarter last year. Consensus quarterly revenue estimates are calling for $17.49 billion versus $14.05 billion in the prior year’s quarter, according to Benzinga Pro.
Broadcom has built a strong earnings track record, beating revenue expectations in three straight quarters and in eight of the past 10. The company has also topped earnings per share estimates in 9 of the last 10 quarters.
Still, investors seem to be cautious ahead of the report, waiting to see how the company's AI revenue growth trajectory and fiscal 2026 guidance shape up. Oracle’s weak earnings reaction may also be adding to the hesitation from investors on Thursday. It’s also worth noting that Broadcom is trading near 52-week highs.
In the prior quarter ended Aug. 3, 2025, Broadcom reported $15.95 billion in revenue, up 22% year‑over‑year, alongside adjusted EPS of $1.69 and adjusted EBITDA of $10.7 billion, representing 67% of revenue.
CEO Hock Tan emphasized that AI revenue surged 63% to $5.2 billion in the third quarter, fueled by demand for custom AI accelerators, networking and VMware. The company projected that fourth-quarter AI semiconductor revenue would climb to $6.2 billion, marking its 11th consecutive quarter of growth.
Broadcom also generated $7.17 billion in operating cash flow last quarter, with free cash flow of $7.024 billion, representing 44% of revenue.
For the fourth-quarter, the company had guided revenue to about $17.4 billion, which would mark a 24% increase from last year. Analysts are anticipating slightly higher numbers when Broadcom reports after the bell.
AVGO Analysis
Broadcom is currently trading approximately 12.4% above its 50-day moving average of $360.09 and approximately 45.5% above its 200-day moving average of $278.18. This significant distance from both moving averages indicates strong bullish momentum over the medium to long term, although the recent price action may suggest a potential consolidation phase as it tests the upper bounds of its trading range.
The stock’s 52-week range of $138.10 to $414.61 highlights its impressive recovery and growth trajectory over the past year. The recent high of $414.61 represents a key resistance level, while the low of $138.10 serves as a strong support base that investors may look to in times of volatility.
Volume on Thursday reached 18.3 million shares, reflecting active trading as investors react to the stock’s price movements. This volume indicates heightened interest, which could lead to increased volatility as traders position themselves ahead of potential breakout or reversal scenarios.
AVGO Price Action: Broadcom shares were down 1.87% at $405.23 at the time of publication on Thursday. The stock is trading near its 52-week high of $414.61, according to Benzinga Pro.
Read Next:
Image: Piotr Swat/Shutterstock.com
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
