Broadcom Stock Hitting Record Highs Before Earnings

Outperforming semiconductor stock Broadcom Inc (NASDAQ:AVGO) is trading at record highs, last seen up 0.4% at $407.91. The stock surged earlier this week after news that it is in talks with Microsoft (MSFT) to develop custom chips -- one of the several new tech partnerships the rapidly growing company has procured. Should these gains hold, AVGO is on track for its fifth consecutive win. 

Analysts anticipate strong AI-driven results in Broadcom's fiscal fourth-quarter report, which is due out after the close on Thursday, December 11. Consensus estimates call for earnings of $1.87 per share and revenue of roughly $17.5 billion, both significantly higher than the same quarter a year ago. 

Of the 40 analysts in coverage, 37 carry a "buy" or better rating, while the remaining three maintain a cautious "hold." The Wall Street favorite also sports a 12-month consensus price target of $407.37, roughly matching its current share price. 

Looking at AVGO's past reactions, the stock has finished higher in five of its last eight post-earnings sessions. Over those reports, it averaged a 9.9% swing, regardless of direction, which is right around the 10% move the options pits are pricing in this time around.