Dec. 11 Will Be a Big Day for Broadcom. Should You Buy or Sell the Stock Now?

Broadcom (NASDAQ: AVGO) has successfully positioned itself arsenic a important subordinate successful the planetary artificial quality (AI) infrastructure build-out. The company's customized accelerators (XPUs), high-speed Ethernet-based networking products, and VMware Cloud Foundation backstage unreality bundle level are present being utilized extensively by hyperscalers and AI labs to tally ample AI workloads.

Broadcom volition study its results for the 4th fourth and fiscal twelvemonth 2025 (ending Nov. 2, 2025) connected Dec. 11, which whitethorn importantly interaction 2026 expectations and the company's aboriginal stock terms trajectory. However, the banal is presently trading astatine 40.3 times guardant earnings, which implies that overmuch of the imaginable upside is already priced in. Hence, investors request to see whether to buy, sell, oregon fastener successful profits up of the quarterly update.

Investors request to support a keen oculus connected the fiscal 2026 and fiscal 2027 forecasts that whitethorn beryllium provided successful the upcoming net call. Management has already stated that AI gross volition grow adjacent faster than fiscal 2025's estimated 50% to 60% year-over-year maturation rate, driven chiefly by exceptional request for its customized accelerators from its 3 large hyperscaler clients and a accelerated ramp-up astatine a 4th client.

Broadcom believes each of its 3 hyperscaler customers volition deploy 1 cardinal of the company's XPUs successful AI clusters by 2027. These clients are progressively opting for XPUs successful their multiyear enlargement cycle.

The institution besides secured a $10 cardinal bid for XPU-based AI racks from the 4th qualified lawsuit successful the 3rd 4th of fiscal 2025. Volume shipments from this bid are expected to commence from the 3rd 4th of fiscal 2026. The institution is frankincense focused connected 7 cardinal ample connection exemplary players, of which 4 are already clients, portion the remaining 3 are high-potential prospects.

Broadcom's multiyear concern with Alphabet is besides proving to beryllium a important maturation catalyst. Since 2016, Broadcom has been helping Alphabet make and manufacture its in-house Tensor Processing Units (specialized AI chips), and the accelerating usage of these TPUs successful grooming and inference for Alphabet's frontier models is expanding Broadcom's semipermanent visibility successful the AI semiconductor market.