Broadcom Earnings: AI Demand & Q2 Preview
- (AVGO) is poised to reveal its earnings Thursday after market close, with analysts forecasting notable growth fueled by the demand for AI-related hardware.
- The company's custom ASIC business is predicted to grow 35% year-over-year, reaching $10.6 billion in fiscal year 2025.
- however, increased competition in the AI chip market could lead to price reductions, challenging Broadcom's market share.
Anticipate a surge in the custom AI chip business! Broadcom’s earnings report,slated for release thursday,promises robust growth driven by AI demand,with sales projected to hit $15 billion. Learn how the company aims to expand its footprint in the artificial intelligence market, possibly reaching $10.6 billion in fiscal year 2025 through its custom ASIC business. Analysts predict EPS will also climb, reaching $1.57. Discover how Broadcom’s interchangeable XPUs position it competitively,while a competitive AI chip market could impact pricing. The addition of new AI customers, including Apple and OpenAI, could reshape Broadcom’s revenue. At News Directory 3, we’re following this story closely. Discover what’s next as the earnings report unveils the path forward.
Broadcom Anticipates Growth in Custom AI Chip Business
Updated June 05, 2025
Broadcom Inc. (AVGO) is poised to reveal its earnings Thursday after market close, with analysts forecasting notable growth fueled by the demand for AI-related hardware. Sales are projected to jump 20% to $15 billion, while earnings per share (EPS) are expected to climb 43% to $1.57. Investors are notably interested in the company’s custom AI chip business and its potential for further expansion in the AI market.
The company’s custom ASIC business is predicted to grow 35% year-over-year, reaching $10.6 billion in fiscal year 2025. Broadcom’s ability to offer interchangeable XPUs (accelerator processing units) as alternatives to GPUs in AI processing gives them a competitive advantage in the AI chip market.
however, increased competition in the AI chip market could lead to price reductions, challenging Broadcom’s market share. A significant portion of Broadcom’s AI revenue depends on a few major clients, creating a risk if these clients reduce orders or switch suppliers. The potential addition of new AI customers, including Apple and OpenAI, could broaden Broadcom’s addressable market and boost future revenue.
Option statistics suggest varied scenarios based on Broadcom’s upcoming earnings report. A lower earnings report could trigger a sell-off, while a better-than-expected report could trigger a gradual rise. Exceptionally positive guidance could lead to a short-lived rally.
Analyst Ratings
| Source | Buy | Hold | Sell |
|---|---|---|---|
| Refinitiv | 38 | 4 | 0 |
| TipRanks | 27 | 2 | 0 |
Earnings Expectation
| Metric | Value |
|---|---|
| EPS | $1.57 USD |
| Revenue | $14.96 BUSD |
What’s next
Broadcom’s Q2 2025 earnings report, due after market hours on Thursday, will provide insights into the company’s performance and future prospects in the competitive AI chip market. Investors will be watching closely to see if Broadcom can maintain its growth trajectory and capitalize on new opportunities.