Shares in semiconductor manufacturer Broadcom’s stock (AVG) rose on Wednesday ahead of the company’s latest earnings report. Analysts are optimistic, believing the company will beat earnings expectations, and pushed the stock to a new intraday high on Wednesday morning.

Wall Street analysts expect the company to post adjusted earnings of $2.39 per share on revenue of $22.13 billion. The company reported earnings per share of $1.58 per share on revenue of $15 billion for the same three-month period a year ago. Broadcom is also expected to benefit from hyperscaler artificial intelligence spending this year, which is estimated to reach $650 billion. The custom chipmaker’s customers include Google (GOOGL), Meta (META), and AI developers Anthropic and OpenAI.

Shares of the chip maker have been on a tear over the past five sessions, adding $300 billion in market cap. For the last reported quarter, Broadcom Inc. came out with earnings of $2.05 per share versus the Wall Street estimates of $2.03 per share, representing a rise of 0.99%. For the previous quarter, the company was expected to post earnings of $1.87 per share, and it actually produced earnings of $1.95 per share, delivering a surprise of 4.28%. Broadcom (AVGO) stock now trades at $479.84, 38 times 2026 estimates and 24 times 2027 estimates.

Analysts at Citi recently raised its price target to $500, highlighting expectations of significant revenue growth in the upcoming quarters. Specifically, City said it models Broadcom’s April-quarter and July-quarter sales and earnings per share modestly above consensus, driven by stronger artificial intelligence demand. estimates AI revenue will grow from roughly 49% of total sales currently to approximately 81% by fiscal fourth-quarter 2028, with combined Google and Anthropic AI sales projected to reach around $80 billion and total AI sales hitting $115 billion in 2027, rising to $180 billion in 2028.