Broadcom Inc. (NASDAQ:AVGO) is approaching its December 11 fiscal Q4 earnings report with momentum few semiconductor companies can match. The company has delivered record-breaking results in the first three quarters of 2025, fueled by explosive AI demand, XPU adoption, VMware growth, and industry-leading profitability.
After climbing 64.5% year-to-date (YTD), AVGO is back in the spotlight, with Wall Street estimating up to 40% upside. Investors are now asking: is Broadcom a buy before earnings?
AI Semiconductors Drive Broadcom’s Growth
Broadcom is a global leader in semiconductors, including networking, connectivity, storage, and broadband, and owns major infrastructure software widely used by enterprises. In fiscal Q3, Broadcom reported $16 billion in revenue, up 22% YoY, largely driven by AI semiconductor demand and VMware strength.
The semiconductor segment alone delivered $9.2 billion, up 26% YoY, with AI semiconductors reaching $5.2 billion, a 63% increase YoY—marking ten consecutive quarters of strong AI growth.
Meanwhile, the infrastructure software division, anchored by VMware, generated $6.8 billion in Q3 revenue (+17% YoY) with a 93% gross margin. Broadcom ended the quarter with a $110 billion consolidated backlog, locking in multi-year revenue and reflecting the surge in AI infrastructure spending.
CEO Hock Tan emphasized that semiconductors account for at least half of the backlog, most of it AI-related, while software continues to steadily grow. Non-AI semiconductor growth remains at modest double-digit levels.
A Fourth XPU Customer Fuels 2026 Outlook
A key catalyst for Broadcom’s 2026 growth is the addition of a fourth XPU customer, moving from prospect to fully qualified after placing over $10 billion in orders for XPU-based AI racks. While the company has not disclosed the customer’s name, analysts speculate it could be Anthropic or OpenAI.
This addition has significantly strengthened Broadcom’s internal fiscal 2026 forecasts, surpassing the previously expected 50–60% growth range. Management also confirmed that Hock Tan will continue as CEO through 2030, ensuring stability during this critical growth phase.
The Q4 outlook projects $17.4 billion in revenue, a 24% YoY increase, with semiconductor revenue reaching $10.7 billion (+30%) and AI semiconductor revenue rising 66% YoY. Infrastructure software is expected to reach $6.7 billion (+15%). Analysts see 38% earnings growth for fiscal 2026, reflecting robust long-term prospects.
Wall Street Confidence in AVGO Stock
Out of 40 analysts covering AVGO, 34 rate it a “Strong Buy”, three a “Moderate Buy,” and three a “Hold.” Despite a record run in 2025, the stock could climb another 43% based on the high price estimate of $535, while the mean target of $406.59 suggests an 8% upside from current levels.
Broadcom’s combination of AI tailwinds, custom XPU demand, $10 billion in new orders, and a $110 billion backlog, along with strong execution in VMware and infrastructure software, positions AVGO as a compelling stock for long-term growth investors.
Is Broadcom AVGO Stock a Buy Before December 11?
For investors seeking exposure to AI infrastructure, advanced networking, and enterprise software, Broadcom remains a top choice. With a strong backlog, accelerating AI semiconductor revenue, new XPU customers, and reliable software growth, AVGO demonstrates both growth potential and execution strength.
In short, Broadcom AVGO stock is not just riding the AI boom—it is building sustainable momentum, making it a key name to watch before its December 11 earnings announcement.
Investors should also consider Broadcom’s long-term positioning in the rapidly evolving AI ecosystem. The company’s combination of semiconductor innovation, software dominance, and hyperscale XPU partnerships gives it a competitive moat that rivals will find hard to match. Its leadership under CEO Hock Tan, with a clear commitment through 2030, adds stability and confidence for shareholders seeking both growth and reliability. Furthermore, Broadcom’s ability to capture high-margin AI opportunities while maintaining strong infrastructure software performance ensures a balanced revenue mix. For both growth-focused and long-term investors, AVGO offers exposure to the AI boom without sacrificing quality, making it a rare semiconductor stock capable of delivering consistent results even in volatile markets.
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Author Stephanie Bédard-Châteauneuf 
