Broadcom Inc. (NASDAQ: AVGO) Earnings Preview: A Look into the Semiconductor Giant's Fiscal Q2 Performance

• Broadcom Inc. (NASDAQ:AVGO) is set to release its fiscal Q2 earnings with analysts expecting EPS of $1.57 and revenue of approximately $14.97 billion.
• The company's performance is a significant indicator within the semiconductor industry, especially in the AI-chip market, with a 19.5% increase in revenue projected.
• AI-related revenues are expected to exceed $5 billion, showcasing strong demand for Broadcom's AI products and its substantial exposure to AI infrastructure.

Broadcom Inc. (NASDAQ:AVGO) is a prominent player in the semiconductor industry, known for its diverse range of products, including semiconductors and infrastructure software solutions. The company is set to release its fiscal Q2 earnings on June 5, 2025. Analysts expect earnings per share (EPS) of $1.57 and revenue of approximately $14.97 billion. Broadcom's performance is closely watched, especially given its significant role in the AI-chip market.

The semiconductor industry has mostly reported its earnings for the period ending April 30, with Broadcom being one of the last major firms to announce its results. NVIDIA, a larger competitor, reported strong earnings on May 28, 2025, which exceeded expectations and led to a moderate rise in its share price. In contrast, Marvell Technology, a smaller rival, saw a decline in its share price post-earnings. Broadcom's upcoming earnings report is anticipated to provide insights into its performance relative to these industry peers.

Broadcom's previous fiscal Q1 results in March saw a notable post-earnings performance, with shares rising by nearly 9% the following day. This helped alleviate concerns in the AI-chip market, especially as NVIDIA and Marvell had experienced significant share price declines after their earnings reports. Analysts are keenly watching Broadcom's upcoming earnings to see if it can continue its strong performance, as highlighted by JPMorgan's positive outlook.

The positive outlook for Broadcom is attributed to strong demand for its AI products and stabilization in its non-AI semiconductor business. AI demand is a significant driver of Broadcom's revenue growth, with AI-related revenues projected to exceed $5 billion, surpassing the consensus estimate of $4.8 billion. Broadcom remains a top pick in the semiconductor sector due to its substantial exposure to AI infrastructure, as noted by JPMorgan.

Broadcom anticipates a 19.5% increase in revenue, reaching $14.9 billion, compared to the same period last year. This growth is largely driven by a projected 44% rise in AI revenues, fueled by demand for XPUs and investments in data centers. Additionally, VMware's transition to subscription models and the strong adoption of VCF and Private AI Foundation are contributing to software growth. The Zacks Consensus Estimate aligns closely with Broadcom's revenue expectations, pegging it at $14.92 billion.