Broadcom releases its latest earnings on Thursday, and they will need to be good to save chip stocks from a recent bout of weakness.
AVGO – Daily Chart
The price of AVGO now trades at $152.79 and is down sharply from the June highs. There is now a risk of further weakness to the $128.78 level. Positive earnings could support the stock for another move higher.
Semiconductor firm Broadcom’s latest results will be released Thursday after the closing bell and will be one of the week’s most anticipated events. Broadcom stock is up around 40% this year, and analysts are positive about the earnings.
According to recent data, 12 of the 13 analysts covering Broadcom have “buy” ratings on the company. The average price target on the firm is $192.96, roughly 19% higher than Friday’s close price. However, the stock dropped on Tuesday, causing weakness in the broader sector.
Broadcom conducted a 10-for-1 share split this year and has continued to impress with its AI-related goals.
Broadcom has been a key customer for Apple in recent years despite the iPhone maker developing its chips. Cisco Systems and Comcast are among the names of its other customers.
The latest earnings report will come after Nvidia shares disappointed the market, and we could see the market react to the strength of AVGO revenue growth. Traders will be looking for chip stocks to stabilize, and the release could add further jitters to the sector if it misses estimates on growth or management guidance.
