is set to report first-quarter earnings Wednesday, March 4, after the market close, followed by a management conference call at 4:15 p.m. ET. The stock is down about 9% year-to-date but remains above its February swing low of 295.30, while the S&P 500 is roughly flat.
Confidence was shaken after Broadcom’s December quarter results, which sent the shares sharply lower, and the company warned that first-quarter gross margins would likely fall about 100 basis points as its product mix shifts toward custom AI chips, lower-margin products compared with its infrastructure software business.
Key highlights:
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CEO Hock Tan’s comment that AI demand is “hard to pinpoint” unsettled investors hoping for clearer visibility. Geopolitical and regulatory headwinds have compounded uncertainty. The U.S. has extended its review of AI hardware export license applications citing national security, Chinese customers have paused orders, and China ordered state-owned enterprises to stop using foreign software by midyear. Nearly 20% of Broadcom’s revenue is exposed to China, intensifying concern about the near-term outlook.
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Analysts expect revenue for Broadcom’s semiconductor solutions segment to reach $12.4 billion, a 51% increase from a year earlier. Infrastructure software revenue is projected at $6.99 billion, up about 4.3% year over year.
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Shares of Broadcom have risen about 64% over the past 12 months as investors bet the chipmaker will continue to benefit from AI demand, though the stock has been down roughly 9% so far this year. The company also provides enterprise software services, which factor in investor views on its growth and valuation.
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Broadcom shares fell 3.2% on Feb. 26 after rival reported earnings on Feb. 25. Nvidia, the AI market favorite, posted fourth-quarter results that comfortably beat analyst estimates. The company also issued stronger-than-expected guidance, prompting investors to rotate toward Nvidia and putting pressure on Broadcom’s stock.
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Broadcom trades at about 26.9 times expected next-12-month earnings, higher than Nvidia’s 21.3x and slightly above AMD’s 25.7x.
Analysts Expectation:
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RBC Capital cut its price target on Broadcom to $340 from $370 but kept a Sector Perform rating.
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UBS reiterated a Buy rating on AVGO with a $475 price target.
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TD Cowen kept a Buy rating on Broadcom (AVGO) but cut its price target to $405 from $450.
AVGO Q1 2026 earnings after market (4:15 pm et) Wednesday, March 04, 2026
|
Analyst Ratings |
|||
|
SOURCE |
BUY |
HOLD |
SELL |
|
Refinitiv |
49 |
2 |
|
|
TipRanks |
28 |
2 |
|
|
Earnings Expectation |
|
|
EPS |
2.03 USD |
|
Revenue |
19.26 B USD |
Expected Move by option expiration:
Options flow shows a large net positive open interest at the 400 strike (53,010 contracts) and a net negative open interest at the 300 strike (-51,328 contracts) across expiries from March 2026 to Dec 2028.
Technical Analysis Perspective:
-
AVGO is trading in a descending-channel pattern on the weekly chart.
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This week, the channel resistance is 334, the midpoint 306, and the base is 281.
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As of the close on March 3, the stock is trading near the midpoint.
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Bearish case: a break below 306 would target 281 in the coming days.
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Bullish case: staying above 306 would aim for 334.
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Near-term option flow (next two weekly expiries) leans toward the bullish scenario.
Weekly Candlestick Chart
AVGO Seasonality Chart
Since 2019, AVGO has seen March close with 2.1% rise in 59% of years and April with a 0.9% decline in 31% of years.
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Ali Merchant is a seasoned financial market professional with expertise in Technical Analysis, Treasury & Capital Markets, Trading, Sales, Research, Training, Fund & Relationship Management, Fintech, and Digitalization. He is a CMT charter holder and an active member of CMT Association, USA, American Association of Professional Technical Analysts, and CMT Association of Canada. He has worked on various roles and organizations in North America and the GCC, such as ABN Amro bank, Thomson Reuters, Refinitiv, MAK Allen & Day Capital Partners, and Bridge Information Systems.
He is the founder of TwT Learnings, provides financial market training.
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