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Broadcom Nears Record Highs After Edge AI Chip Launch and Large Put Bets

The BCM68850 home gateway system-on-chip brings neural processing to 50G broadband and leaves investors focused on a June 3 earnings report that could change expectations.

Overview

  • Broadcom's stock has climbed to near record highs following analyst upgrades and recent company announcements that have lifted investor confidence.
  • On May 26 Broadcom unveiled the BCM68850, a 50G PON home gateway system-on-chip that includes an integrated neural processing unit and Wi‑Fi 8 and completes the firm's end-to-end 50G broadband portfolio.
  • Regulatory filings show Situational Awareness LP placed put option bets equivalent to roughly 3 million Broadcom shares and other large managers have taken bearish positions, signaling sizable hedge interest against the rally.
  • Wall Street expects Broadcom to report fiscal Q2 results after the close on June 3 with consensus revenue around $22.1 billion and adjusted EPS near $2.40, and options traders are pricing an unusually large post-earnings move of about 10.65 percent.
  • Broadcom's AI momentum rests on custom ASICs and high-speed networking that drove AI revenue up 106% to $8.4 billion and built a roughly $73 billion AI backlog, but concentration among a few hyperscalers and reported shifts in custom programs or financing plans create execution and pacing risks to watch.