Broadcom (NASDAQ: AVGO) has seen massive gains in the stock market since AI became a cultural phenomenon in November 2022. Shares generated a total return of about 489% between November 30, 2022, and late August 2023.

With a market capitalization of $1.45 trillion, Broadcom’s Q3 earnings report on Sept. 4 is highly anticipated. Wall Street estimates revenue of $15.82 billion and adjusted EPS of $1.66, requiring substantial beats for a post-earnings surge.

Broadcom’s stock has surged nearly 26% since its Q2 earnings release, with a forward P/E ratio over 42x. Commentary on AI semiconductor growth and prospective customers could influence stock movement.

Recent price targets suggest modest upside potential for Broadcom, despite the downside risk going into Q3 earnings. Analysts are closely watching Broadcom’s performance in AI semiconductor revenues and infrastructure software growth.

Read more at Nasdaq: With Shares Near Highs, Here’s to Watch in Broadcom’s Q3 Report