AVGO Stock’s Big 2026 Rally Hits Its Moment Of Truth Today: Here's Where Wall Street And Retail Stand Ahead Of Q2 Earnings

• AVGO stock has gained 66% from a recent low on March 30.
• Broadcom will issue its results after the markets close on Wednesday; analysts expect a 47% rise in revenue and 52% growth in adjusted net profit.
• Stocktwits sentiment for AVGO moved higher over the past week and was ‘extremely bullish’ early Wednesday.

Broadcom is seeing heightened optimism from retail investors and analysts as it prepares to report fiscal second-quarter results after the market closes on Wednesday, following a sharp rally in recent months driven by its custom AI chip deals with Google and Meta Platforms.

AVGO shares have been on a tear, rallying 66% from their March 30 low and gaining 40% year-to-date, as investors increasingly view the company as a key beneficiary of the AI data center boom and a critical provider of the infrastructure that underpins AI deployments.

They rose 3.4% to a fresh high in overnight trading ahead of Wednesday’s session, driven by news from the Computex conference in Taiwan, with retail traders increasingly focused on the stock’s push toward the psychologically important $500 level.

AVGO AI Chip Momentum

In April, Broadcom announced a long-term agreement to develop and supply future generations of Google’s Tensor Processing Units (TPUs) and provide networking components for Google’s next-generation AI racks. It also expanded its multi-year partnership with Meta to co-develop future generations of Meta’s MTIA AI accelerators.

Analyst View On AVGO

Broadcom is poised for upside to results and the third-quarter outlook on AI-related sales and the company “has one of the most strategic and financially attractive business models in the industry," Oppenheimer said in an investor note.

“All eyes will be on AI revenue, seen at $10.7B (+140% Y/Y; 72% of semi sales) and now nearly half of total revenue, as custom ASIC/XPU shipments to Alphabet, Meta, and others accelerate alongside networking solutions,” CFRA Research analysts said in a note. “We believe AVGO is gaining share as customers increasingly select custom silicon for workload optimization.”

In recent weeks, several analysts, including those at HSBC and Morgan Stanley, have raised their price targets for AVGO. Currently, 44 of 47 analysts rate the stock ‘Buy’ or higher, and three rate it ‘Hold.’ Their average price target of $486.85 is 1% lower than the stock’s last close.

Overall, analysts expect second-quarter revenue to rise 47% to $22.12 billion, the highest pace of growth since the March quarter of 2017, according to Koyfin. Adjusted profit is expected to rise 52% to $2.40 per share.

Retail View On AVGO

On Stocktwits, the retail sentiment for AVGO has climbed sharply since last week and was ‘extremely bullish’ as of early Wednesday, with message volume surging over 700% in the last seven days. Traders broadly expected the stock to rip after the earnings report.

“$AVGO I think will hit 600 in 24 hours whether it holds will depend on the guidance tomorrow on the earnings call. Of course they will beat. They and Marvell are key puzzle pieces in AI data center,” said a trader. 

Another wrote: “gonna go nuts on earnings, got in at 480 today 20 shares.”

Broadcom has two main businesses: Semiconductor Solutions, which sells chips for networking, data centers, broadband, wireless, and storage markets, and Infrastructure Software, which includes VMware and other enterprise software assets.

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