Semiconductor giant Broadcom is scheduled to report fiscal second-quarter results after the closing bell on Thursday, and traders are expecting a modest post-earnings stock move.
Options pricing suggests investors expect Broadcom (AVGO) stock to move about 6.5% in either direction the day after its earnings report. A move of that magnitude would either lift shares to a record high around $273 or sink them to $240, about where they were a week ago.
Broadcom shares were rising Wednesday, building on a six-day winning streak that put the stock at an all-time closing high on Tuesday. Shares have gained more than 30% in the past month, buoyed by an AI trade revived by Nvidia’s (NVDA) strong results last week.
Broadcom stock has registered an average post-earnings move of 13.9% over the past four quarters, and rose in three of those instances. A 6.5% gain or loss on Friday would represent the stock’s smallest post-earnings move since December 2023.
Shares jumped more than 8% in March after reporting record first-quarter revenue amid continued strength in its AI semiconductor and infrastructure software businesses. The stock surged nearly 25% on its strong December earnings report, which propelled Broadcom into the small group of $1 trillion companies.
Analysts are bullish on Broadcom’s long-term outlook but see limited upside heading into Thursday’s earnings. Of the 14 Broadcom analysts tracked by Visible Alpha, 13 rate the stock a “buy” and one is neutral. The average price target of $251.70 is about 2% below the stock’s closing price on Tuesday.
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