The international semiconductor manufacturer Broadcom (AVGO: NASDAQ) is due to release its Q4 earnings after the close of the stock market on Thursday, 7th December. Industry experts have predicted that the technology company will outperform its own estimates, as the company has done throughout all of 2023. Currently, Wall Street has issued a Strong Buy suggestion with 11 buy ratings and two hold ratings.
Broadcom shares exceeding expectations for 12 consecutive months
Analysts observe that the 12 consecutive months of exceeding expectations have been spurred on by the rapidly growing demand for artificial intelligence (AI) chips, mainly GPUs, which are provided by tech giants such as Nvidia, and semiconductors.
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Hans Mosesmann, analyst at Rosenblatt Securities, suggested that the rise in AI products has offset the decreased demand for telecommunications products, which, for Broadcom, offers a favourable outlook for the next decade. Mosesmann and BMO Capital analyst Ambrish Srivastava both assigned a buy rating to Broadcom’s stock with a price target of $1,000.
Broadcom’s recent acquisition of VMware, a cloud computing and tech virtualisation company, has contributed to investor confidence; however, on Wednesday, Broadcom announced its plans to lay off many VMware transferring employees. Alternatively, employees have been offered new, shorter fixed-term contracts with shorter hours with a mandatory office-work policy.
The company predicts a revenue of $9.27bn year-over-year ahead of its Q4 results.
