AVGO Up 80% Since April — Can Q2 Earnings Push It Even Higher?
From the April lows, this stock has soared nearly 80%, approaching all-time highs. But it's not an AI meme stock, nor a typical tech growth play. It's one of the top 10 companies by market cap — and it’s breaking the old stereotype of "too big, too slow."
Here are some highlights from our community:
🎉 Huge congrats to @Jialatsia for locking in $11,584 in profits on $Broadcom(AVGO)$.
🎉 Huge congrats to @Feijoa8025 for securing $1,404 returns on $Broadcom(AVGO)$.
Feijoa8025 shared:
No regrets putting my money on $Broadcom(AVGO)$ ! What's the earnings going to be next week????
📌 Mark your calendars: Broadcom reports earnings this Thursday, 6 June, after market close.
Why are investors so bullish on Broadcom?
Broadcom continues to ride the wave of AI demand — not just from hype, but from real, growing customer spending. The company is currently collaborating with three hyperscale customers to build custom AI accelerators and is in talks with two more, possibly including Alphabet and Meta.
At the same time, tech giants are ramping up capex:
Meta raised its 2025 guidance to $64–72B
Alphabet maintained $75B
Amazon is calling its upcoming investments “aggressive”
Microsoft is also expanding spending, focusing on servers and networking infrastructure.
This trend bodes well for Broadcom’s continued growth.
Market tailwinds
Goldman Sachs projects global data center power demand to surge +165% by 2030
Gartner predicts enterprise AI adoption to hit 80% by 2026 (up from 42% today)
This means we're still early in the AI hardware cycle — and Broadcom is well-positioned to benefit.
What to expect in Q2?
Broadcom is expected to post:
$4.4B in AI-related revenue, up +44% YoY
$6.5B in software revenue, up +23% YoY
Its software business — transitioning from perpetual licenses to subscription — has already completed over 60% of the shift, with strong momentum in VMware Cloud Foundation (VCF) adoption. VCF is also enabling on-prem AI workloads, aligning with rising data sovereignty needs.
What about non-AI segments?
Broadcom’s legacy segments are stabilizing:
Broadband bounced back with double-digit QoQ growth in Q1
Server storage could see high single-digit QoQ growth in Q2
Even if non-AI chip revenues stay flat QoQ, stronger order volumes hint at a rebound in H2 2025
A word of caution?
Valuation is rich. AVGO’s EV/EBITDA sits at 39.1x, well above industry peers — leaving it vulnerable to any earnings disappointment or guidance miss for Q3.
Still, since March 2024, AVGO has rallied +44%, outpacing the S&P 500. It has already recovered all its year-to-date losses and returned to its 2025 highs.
👉 Could this week’s earnings take it to new all-time highs? Any trading strategies?
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If we get a strong reaction, this could mark the next chip leader. I’m eyeing $272–276 as first targets And don’t forget — Nancy Pelosi’s still holding deep ITM calls set to expire this month on June 20th.
Trade Plan: Entry: Above 250 (Previous Swing high) or wait for 252 (ATH) break
Target Price: 252, 263, 270, 277
Stop loss: failure of 243