The semiconductor giant Broadcom is approaching a pivotal juncture. After a significant rally, the stock has retreated approximately 10% from its October peaks. This pullback coincides with a fresh, bullish analyst initiation and the impending release of the company’s most critical financial results of the year. Could this consolidation phase be the setup for the next leg up?
All Eyes on December 11th: AI Revenue in the Spotlight
The most anticipated event for Broadcom is its upcoming earnings report scheduled for December 11th, after the market closes. The company will unveil its fourth-quarter and full-year 2025 results. While analysts project an earnings per share of around $1.87, the market’s primary focus will be squarely on the performance of its artificial intelligence segment.
The previous quarterly report already showcased a staggering 63% year-over-year surge in AI-related semiconductor revenue. For Q4, Broadcom’s own guidance points to AI revenues hitting $6.2 billion. The central question investors will want answered is whether this powerful momentum can be sustained. Furthermore, the company’s outlook for the 2026 fiscal year will be crucial in determining if the stock can conclude its corrective phase and begin a new ascent toward record highs.
Raymond James Initiates with a Bullish $420 Target
Adding positive sentiment to the narrative, the investment firm Raymond James commenced coverage on Broadcom this Thursday. The firm assigned an “Outperform” rating and set a price target of $420 per share. This projection implies a potential upside of about 21% from the current trading level near $347.
Should investors sell immediately? Or is it worth buying Broadcom?
Although this target is more conservative than the $435 from Mizuho or the $480 from Jefferies, the timing of the initiation is notable. It arrives during a period where the stock appears technically weakened and investors are growing more selective regarding AI-sector valuations. The analysts expressed confidence in Broadcom’s ability to successfully execute its AI strategy and integrate its recent acquisition, VMware. They highlighted the company’s custom silicon (ASIC) business for hyperscalers as a continuing core growth driver.
Institutional Moves and Technical Support
Recent regulatory filings reveal a mixed picture among major institutional investors, reflecting divergent strategies. For instance, Artisan Partners established a new position valued at nearly $89 million. Conversely, Alteri Wealth LLC reduced its stake by 3.8%. This activity suggests that while some funds are capitalizing on the year’s strong gains by taking profits, others perceive the current dip as a buying opportunity.
From a technical analysis perspective, the stock is testing a critical support zone between $335 and $340. Maintaining this price level, especially when combined with the positive catalyst from the Raymond James initiation, could establish a foundation for a pre-earnings price recovery.
The overarching question for the market remains: Is the retreat from the $386 highs merely a healthy consolidation within a longer-term uptrend, or does it signal growing investor skepticism about the sustainability of the AI boom? Broadcom is poised to provide the answer in just under three weeks.
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