Dear Reader,
In 2004, one man called Nvidia before just about anyone knew it existed.
He wrote...
"Nvidia is now selling chips so powerful that current computer hardware and gaming software can't even exploit the technology."
Now, this same guy says a new company could become the next to soar like Nvidia.
It only IPO'd in 2023.
But already its making major waves.
The biggest tech firms are loading up on shares. Nvidia, Apple, Google, AMD, Intel, and Samsung are all invested in this company.
It also signed a MAJOR deal with Apple to get its AI tech into the iPhone and iMac.
And it's tech is also found in products from Samsung and Google.
Will it become the next trillion dollar company?
Go here to see why the guy who called Nvidia first says it could be one of "The Next Magnificent Seven."
Sincerely,
Rachel Gearhart
Publisher, The Oxford Club
With Shares Near Highs, Here's to Watch in Broadcom's Q3 Report
Written by Leo Miller. Published 9/1/2025.
Key Points
- Broadcom's Q3 earnings report is fast approaching with shares trading near all-time high levels.
- See why Broadcom's risk looks elevated going into the report.
- Still, an upside move is possible. The firm will likely need big beats or big news to achieve this.
Broadcom (NASDAQ: AVGO) has been one of the market's most talked-about names amid the artificial intelligence (AI) boom. Many point to ChatGPT's public debut in November 2022 as the moment AI entered the mainstream—and Broadcom's stock performance since then highlights its critical role in the space.
From November 30, 2022, through late August 2023, shares returned about 489%.
What Steve Bannon revealed about Trump's gold play (Ad)
A Trump advisor just said 3 words that could reset the dollar.
It's a gold move nobody saw coming—and your IRA could be at risk.
Here's how to prepare.
With a market capitalization of roughly $1.45 trillion, Broadcom's quarterly earnings draw significant attention. The semiconductor leader is slated to report Q3 results on Sept. 4. Here are the key factors investors will be watching.
Broadcom Needs Big Beats to Extend Its Rally
Broadcom must meet or exceed consensus on revenue, adjusted earnings per share (EPS) and deliver strong guidance to justify its lofty valuation. In Q2, management guided Q3 revenue to $15.8 billion—a year-over-year increase of 21%—and Wall Street forecasts are in line. MarketBeat models $15.82 billion in revenue and adjusted EPS of $1.66 (up 35%).
Yet modest beats may not spark another rally. For example, NVIDIA (NASDAQ: NVDA) topped sales and EPS estimates on Aug. 27, but its shares slipped the next day. Likewise, after Broadcom edged past Q2 estimates, its stock fell about 5%.
Since Broadcom's Q2 release on June 5, the shares have climbed nearly 26%, trading around $310—levels never seen before an earnings report. The forward price-to-earnings ratio now exceeds 42x, close to its all-time high of 43x. By comparison, NVIDIA entered its latest report with a forward P/E near 34x, roughly in line with its three-month average of 33x.
These metrics point to elevated downside risk heading into Q3. A significant beat, coupled with guidance hinting at roughly 25% revenue growth in Q4, would likely be required to extend the rally.
Key Drivers for Broadcom Stock
AI semiconductor revenue is the primary growth engine. Broadcom expects that segment to expand 60% in Q3, and investors will want to see the company hit or exceed that pace. Management has signaled this growth rate could be sustainable into 2026, so reaffirming that outlook will be critical.
Another potential catalyst could come from updates on its four prospective AI chip customers. Any clear indication that these prospects will convert to actual customers in 2026 or 2027 could expand Broadcom's serviceable addressable market (SAM). While management has said it likely won't update its SAM until 2026, it left open the possibility of an earlier revision—creating room for an upside surprise.
Broadcom's second-largest segment, infrastructure software, targets 16% growth in Q3. Last quarter, the company noted that 87% of its 10,000 largest VMware clients had adopted VMware Cloud Foundation (VCF). Investors will look for that adoption rate to continue rising.
Recent Price Targets Offset Q3 Risk
Since early July, MarketBeat has tracked eight updated Wall Street price targets on Broadcom, which average $326—implying modest upside from current levels. Those projections contrast with the MarketBeat consensus target of about $302, suggesting roughly 2% downside.
Broadcom's valuation points to greater downside risk ahead of Q3 earnings, but the recent wave of high price targets offers a bullish counterpoint. Ultimately, a substantial beat and confident forward guidance will be key to determining whether the stock can continue its climb.
to bring you the latest market-moving news.
This email message is a sponsored message from The Oxford Club, a third-party advertiser of TickerReport and MarketBeat.
This ad is sent on behalf of The Oxford Club, 105 W. Monument Street Baltimore, MD 21201. If you would like to opt out from receiving offers from The Oxford Club, please click here
Contact Us | Unsubscribe
© 2006-2025 MarketBeat Media, LLC dba TickerReport. All rights reserved.
345 N Reid Place, Suite 620, Sioux Falls, South Dakota 57103. United States..
No comments:
Post a Comment