12:38 PM EST, 12/05/2024 (MT Newswires) -- Broadcom's ( AVGO ) artificial intelligence compute and networking franchises are expected to drive upside to the company's fiscal Q4 results, set to be released Dec. 12, Oppenheimer said in an earnings preview.

Semiconductors are expected to rise 10% year over year in the quarter, led by networking chips, the firm said in a note emailed Thursday.

AI revenue is also seen to increase 10% on custom Application-Specific Integrated Circuits, or ASIC, and ethernet switching, Oppenheimer said.

Broadcom ( AVGO ) secured an ASIC contract for Microsoft-backed (MSFT) OpenAI's AI inference project. OpenAI is the fourth customer for custom silicon project after Alphabet's (GOOG), Meta Platform's (META), and ByteDance.

Oppenheimer maintained the company's outperform rating and $200 price target.

Price: 171.37, Change: +0.81, Percent Change: +0.47