By Nauman Khan
Publication Date: 2025-12-11 17:17:00
This article first appeared on GuruFocus.
Broadcom (NASDAQ:AVGO) reports fiscal fourth-quarter results after the market close today, and investors are focused on management’s commentary about AI chips and customer demand.
Wall Street expects roughly $17.5 billion in revenue and adjusted EPS near $1.87 for the quarter, figures that would underline ongoing strength in custom AI ASICs.
Options traders are pricing a sizable move: the options market implies an expected post-earnings swing of about 6% to 7%, suggesting traders see material upside or downside risk after the print.
Analysts point to Broadcom’s growing role building custom TPUs and ASICs for hyperscalers, partnerships that could lift AI revenue, while J.P. Morgan and other houses remain bullish on the name.
Risks include margin mix pressures and rising capex tied to data-center deployments; investors will watch management’s FY26 AI revenue color and any guidance on XPUs and gross margins.
Traders should…
