Here’s how much traders expect Broadcom stock to move after earnings

Broadcom (AVGO) is set to release its fourth-quarter financial results after the market close on Thursday, with traders expecting the chipmaker’s stock to hit new highs following the report.

Based on current options prices, Broadcom stock is expected to rise or fall as much as 6% by the end of the week. Based on Monday’s closing price, that would push Broadcom stock to about $425 at the high end, surpassing the intraday record of $407 the stock set on Monday, or push it down to about $377.

Last quarter, Broadcom’s revenue reached a record $15.95 billion as the company beat estimates, leading some analysts to describe Broadcom as a “Magnificent 8” stock that could continue to grow alongside Nvidia (NVDA) if the AI ​​industry continues to expand. Broadcom stock soared after the report, hitting several record highs in the months that followed.

Analysts from Bank of America and Morgan Stanley recently raised their price targets for Broadcom shares, but noted that the chip designer faces long-term risks. Alphabet (GOOGL) Google is looking to design its future generations of AI chips locally, rather than the current generation it designed in partnership with Broadcom, analysts said. This could jeopardize Broadcom’s market share if Google is successful and eventually looks to sell its designs to other existing Broadcom customers.

Broadcom’s revenue is expected to jump 24% year-over-year to another record high of $17.48 billion, while adjusted earnings per share are expected to reach $1.88, compared to $1.42 in the corresponding period last year.

Analysts are overwhelmingly bullish on Broadcom shares, with all 12 analysts with current ratings tracked by Visible Alpha rating the chipmaker a “buy.” The stock has an average price target of $432.02, with analysts expecting shares to continue rising to record levels.