Reuters08:12 PM , 03/04/2026
BUZZ-PREVIEW: Broadcom rises, investors eye AI chip margins
** Broadcom AVGO.O shares rising 2.1% on Wed ahead of qtrly results after the bell, with investors focused on AI chip demand and its impact on margins
** The chip designer is expected to report a 29% surge in fiscal first-qtr rev to $19.18 bln and adj EPS of $2.03, vs $1.60 yr-ago, per LSEG
** In Dec, the co projected strong AI rev but warned that a higher mix of AI biz would pressure gross margins, sending shares lower post-earnings
** Stock recently at 27 times expected earnings, above its five-year avg of 22, per LSEG data
** Shares have fallen ~7.5% YTD, underperforming the Nasdaq’s .IXIC 1.6% dip
** Wall Street is bullish, with 49 of 51 analysts rating the stock ‘buy’ or ‘strong buy’; median PT is $454 vs current price of $320.49
(Reporting by Noel Randewich, editing by Colin Barr)
((noel.randewich@thomsonreuters.com))
