Broadcom Inc. (NASDAQ:AVGO) remained in focus Tuesday ahead of its June 3 earnings report as investors assessed the company's evolving artificial intelligence revenue mix, enterprise cloud expansion, and Wall Street's expectations for continued AI-driven growth.



Analysts expect Broadcom to report fiscal second-quarter earnings of $2.32 per share, up from $1.58 a year earlier, on revenue of $22.08 billion compared with $15 billion in the prior-year period.



<h2>UBS Revises AI Revenue Forecasts</h2>



On Monday, UBS raised its Broadcom price forecast to $490 from $475 while maintaining a Buy rating. The bank lowered its 2026 Anthropic-related revenue estimate to about $8 billion from $21 billion after the deal shifted from full AI rack deployments to a more traditional ASIC structure.



Analysts said the revised structure could improve profitability because the new arrangement carries higher margins despite lower revenue volume. UBS also reduced its fiscal 2027 AI revenue forecast to $133 billion from $145 billion. It also trimmed its 2027 EPS estimate to $21.14, the Street reported on Monday.



<h2>LSEG Partnership Expands VMware Cloud Deployment</h2>



Separately, LSEG and Broadcom renewed their technology partnership through a new five-year agreement centered on VMware Cloud Foundation.



The deal expands LSEG's use of VMware Cloud Foundation as part of its multi-cloud strategy and includes Broadcom professional services to deploy VMware Cloud Foundation 9 across LSEG environments.



The companies said the platform will improve resilience, security and operational efficiency for LSEG's regulated infrastructure while supporting future automation and workload growth.



<h2>Analyst Consensus &amp; Recent Actions</h2>



The stock carries a Buy rating with an average price forecast of $479.86. Recent analyst moves include:



<ul>
<li>UBS: Buy (Raises forecast to $490.00) (May 18)</li>



<li>TD Cowen: Buy (Raises forecast to $500.00) (May 15)</li>



<li>Wells Fargo: Overweight (Raises forecast to $545.00) (May 14)</li>
</ul>



<h2>Broadcom Price Action</h2>



AVGO Price Action: Broadcom shares were down 1.21% at $415.60 during premarket trading on Tuesday, according to Benzinga Pro data.



The early dip looks tied to the broader premarket tone rather than a single stock-specific headline, with traders leaning defensive into the open as growth-heavy indexes lead the downside. With AVGO sitting near recent highs, even a modest futures-driven pullback can translate into quick profit-taking.



Broadcom trades at a price-to-earnings ratio of about 82x, reflecting a premium valuation relative to many semiconductor peers as investors continue to price in strong artificial intelligence-driven growth expectations.



Photo via Shutterstock

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Broadcom (AVGO) is under scrutiny ahead of its June 3 earnings report, with analysts bullish on its AI revenue growth. UBS raised its price target to $490, while Wells Fargo and TD Cowen also increased their forecasts. Analysts expect earnings of $2.32 per share on revenue of $22.08 billion. Despite a 1.21% premarket dip to $415.60, the stock maintains a Buy rating with an average forecast of $479.86, reflecting strong AI-driven growth expectations.

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WELLS FARGO & COMPANY DP SHS REP 1/1000TH INT NCUM PFD CL A DD

WELLS FARGO & COMPANY 7.5% PERP CONV PRF CLS 'A' SERIES 'L'

WELLS FARGO & COMPANY DEP SHS REP 1/1000 INT PER PFD SER Y A

WELLS FARGO & COMPANY DP SHS REP 1/1000TH INT NCUM PFD CL A CC

WELLS FARGO & COMPANY 4.75% DEP SHS 1/1000 NCUM PFD CL A SR Z

WELLS FARGO & COMPANY DEP SHS REP 1/1000TH INT PFD SR AA (CLA)

What's Going On With Broadcom Stock Tuesday?