One of the tech sector’s most dominant players just reported strong earnings for Q2 2025, beating Wall Street estimates.
Broadcom (AVGO) has performed well since the start of the year, recovering from some April volatility and demonstrating strong resilience. Now the multi-faceted tech company, known for producing custom silicon chips and infrastructure software products, looks well-positioned to continue rising.
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Despite all its success since the start of the artificial intelligence (AI) boom, Broadcom remains consistently overshadowed by Nvidia (NVDA) , the chipmaking industry’s undisputed leader. But as the company prepares to enter a new quarter, multiple investing experts have flagged it as a likely winner in the coming year.
For months, AI investors have wondered when and if Broadcom can step out of its rival’s shadow and establish itself as a market leader. Now, two financial experts believe that day may be approaching.
Some experts believe Broadcom CEO Hock Tan can guide the chipmaker new heights.
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Broadcom may be gaining on Nvidia in the semiconductor race
Earlier this week, TheStreet’s Charley Blaine predicted that Broadcom’s earnings could produce shock and awe, urging investors not to dismiss the stock’s year-to-date (YTD) performance. Now the company has posted them, coming in above Wall Street estimates on earnings-per-share (EPS) and issuing strong revenue guidance.
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This shows progress from the chipmaker as it maneuvers to stay ahead in a highly volatile market and compete with other semiconductor producers. Many companies have found it difficult to hold their own against Nvidia, primarily due to the company’s popularity among hyperscalers, firms that provide cloud services or large-scale data centers.
Freedom Capital Markets Chief Global Strategist Jay Woods recently addressed Broadcom’s prospects, though, noting that Nvidia hasn’t been able to lead the industry in the way that investors need. As he sees it, this may create a key opportunity for Broadcom.
“The semiconductor company has grown mightily in Nvidia’s shadows for years now,” he states. “Shares have rallied just over 500% from its 2022 lows, which pales [in comparison] to the 1250+% rally in Nvidia. However, over the past 52 weeks, AVGO shares are leading up 84% compared to Nvidia’s 15% gain.”
Woods adds that Broadcom is “basically Nvidia’s baby brother,” with a slightly lower trillion-dollar market cap and a place in exchange-traded funds (ETFs) such as the VanEck Semiconductor ETF SMH and the Technology Sector ETF XLK, as well as the Nasdaq 100 index.
He notes that following Nvidia’s earnings, Broadcom has an opportunity to step out of the larger chipmaker’s shadow and lead semiconductor stocks higher. However, the strategist adds that many large-cap tech stocks have struggled to reach new highs lately, citing Microsoft (MSFT) as a key example.
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While AVGO stock has dipped slightly since the recent earnings report, the company’s leaders seem convinced that AI demand will help it continue growing. “We continue to make excellent progress on the multiyear journey of enabling our three customers and four prospects to deploy custom AI accelerators,” states CEO Hock Tan.
Wall Street sentiment toward Broadcom remains positive
Following the Broadcom earnings, Wall Street sentiment toward AVGO stock has only improved. BofA Securities analyst Vivek Arya recently raised his price target to $300 per share, urging investors to focus on the company AI’s surge rather than speculation based on quarterly results.
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“We rate Broadcom Buy due to its high-quality diversified exposure to secular product cycles in the smartphone, cloud data center, telecom, and enterprise storage markets,” Arya states. “Additionally, with 45%+ EBITDA/FCF margins, Broadcom is among the most profitable semiconductor companies, which is likely to continue to drive strong cash returns.”
His firm isn’t the only one that remains bullish on Broadcom. Seaport Research reiterated a Buy rating on AVGO on June 4, citing the company’s new Tomahawk 6 as a likely growth catalyst.
The company describes this new AI chip as a “turning point in AI infrastructure design,” highlighting unprecedented demand from both its customers and partners.
Laffer Tengler Investments CEO Nancy Tengler also highlights this as a likely step forward, highlighting it as “another example of staying on the forefront of innovation.” She adds that in her firm’s opinion, AVGO stock’s valuation is full but still fair, even after its recent rally.
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