Bloggers are Bullish on Broadcom (NASDAQ:AVGO) Stock Ahead of Earnings Report

Broadcom (AVGO) supplies semiconductor chips for various applications, including smartphones and data centers. The company plans to report its fiscal Q3 2022 earnings on September 1, after the closing bell. TipRanks’ Blogger Sentiment tool shows that financial bloggers are highly bullish on AVGO stock ahead of the earnings report.

The TipRanks Blogger Sentiment tool can help you identify the best stocks to invest in. The tool analyzes opinions across various financial blogging platforms to gauge the sentiments towards a particular stock. In this case, the tool shows that financial blogger opinions are 95% Bullish on AVGO, compared to a sector average of 66%.

Broadcom supplies components that go into renewable energy systems. The Inflation Reduction Act offers various incentives to encourage renewable power adoption. As a result, it may drive more demand for Broadcoms chips in the energy sector. Moreover, the VMware (VMW) acquisition promises to greatly expand and diversify Broadcom’s business.

What Is Wall Street Saying about Broadcom’s Q3 Earnings Expectations?

Wall Street expects Broadcom to report adjusted EPS of $9.56 on revenue of $8.41 billion. The company expects revenue of $8.4 billion for the third quarter. However, Broadcom did not provide an EPS outlook for the upcoming quarter. In the year-ago quarter, Broadcom delivered adjusted EPS of $6.96 on revenue of $6.78 billion. The results exceeded expectations.

Is Broadcom a Buy or Sell?

Though Broadcom shares have declined more than 20% year-to-date, Wall Street professionals remain bullish on the stock. According to TipRanks’ analyst rating consensus, AVGO stock is a Strong Buy. The average Broadcom stock price prediction of $660 implies 30% upside potential.

Broadcom has a long dividend history and has been paying increasing annual dividends over the past 12 years. AVGO stock currently has a dividend yield of 3.05%, which is more than triple the sector average of 0.94%.

Final Thoughts

Broadcom’s stock stands to benefit from a number of tailwinds. For example, the Chips Act seeks to promote the domestic U.S. semiconductor industry. As a result, it may see Broadcom get a helping hand toward its research and manufacturing projects. Furthermore, demand is building for Broadcom in the renewable energy sector, and the VMware acquisition should help diversify the business.

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