Broadcom shares hit record high at $352.21 after upbeat Q4 revenue forecast

Broadcom shares hit record high at $352.21 after upbeat Q4 revenue forecast

Broadcom (AVGO) shares surged to a record high of $352.21 on Friday, September 2, 2025, following the company's upbeat Q4 revenue forecast. The chipmaker reported a 63% surge in AI revenue to $5.2 billion in its fiscal third quarter, driven by strong demand for AI semiconductors. CEO Hock Tan also indicated that AI semiconductor revenue could reach $6.2 billion in the current quarter, as customers continue to ramp up their AI capacity.

The company's shares were up 13% in recent premarket trading, slightly outpacing the gains of AI chip rival Nvidia (NVDA). The stock has gained about 32% so far in 2025, indicating investor confidence in Broadcom's growth prospects.

Broadcom's strong performance was attributed to its diversified business model, which spans semiconductors, software, and networking. The company's leadership in high-speed networking and partnerships with cloud providers position it to capitalize on the broader AI ecosystem, including data center interconnects and security infrastructure.

However, the company's valuation remains a concern for investors. Broadcom's stock trades at a 117% premium to its 10-year P/E average, far exceeding semiconductor peers like NVIDIA (49.01) and AMD (93.14). Despite this, the company's strategic partnerships with Google/Meta and VMware integration offset valuation concerns, although rivals like NVIDIA and AMD threaten market share gains.

Technical Analysis

Investors can project a bullish price target by using the measured move technique. When applied to Broadcom's chart, the calculation forecasts a target of $349, about 14% above Thursday's closing price.

Crucial support levels worth monitoring during pullbacks in the stock include $282 and $247. The shares could attract buying interest near these levels, with a close below $282 potentially seeing the shares fall toward $265.

Conclusion

Broadcom's strong Q4 revenue forecast and record high share price reflect the company's strategic focus on AI infrastructure and diversification. However, the company's high valuation and competitive landscape present challenges for investors. As AI adoption accelerates, Broadcom's ecosystem-driven approach and financial discipline position it as a compelling long-term play in the AI era.

References

[1] Broadcom (AVGO) Q4 2023 Earnings Call Transcript [https://www.fool.com/earnings/call-transcripts/2023/12/07/broadcom-avgo-q4-2023-earnings-call-transcript/]
[2] Broadcom (AVGO) Q4 2025 Earnings Call Transcript [https://www.fool.com/earnings/call-transcripts/2025/09/02/broadcom-avgo-q4-2025-earnings-call-transcript/]
[3] Investopedia: Broadcom Stock Soars as AI Demand Drives Strong Earnings [https://www.investopedia.com/broadcom-stock-soars-as-ai-demand-drives-strong-earnings-crucial-price-levels-to-monitor-11804068]