Broadcom Surges Over 14% After Strong Quarterly Results and Stock Split Announcement

Broadcom, a leading semiconductor and software company, saw its shares soar over 14% in extended trading on Wednesday following the release of its impressive quarterly results. The company reported a 43% year-over-year increase in revenue to $12.5 billion, surpassing analysts’ expectations. Adjusted earnings per share also exceeded estimates, growing 6% to $10.96.

The strong performance was driven by robust demand for artificial intelligence and VMware products. Broadcom’s AI-related business saw a significant surge in sales, with networking and custom chip revenue up 280% year over year. CEO Hock Tan highlighted the company’s success in capitalizing on the growing AI market, particularly in data center clusters.

In addition to its strong financial results, Broadcom announced a 10-for-1 stock split, making its shares more accessible to investors and employees. The company’s shareholder-friendly capital allocation strategy, which includes dividends and buybacks, has also contributed to its success.

Looking ahead, Broadcom raised its full-year revenue outlook to $51 billion and adjusted EBITDA to approximately 61% of projected revenue. The company expects AI revenue to exceed $11 billion for the year, reflecting its confidence in the continued growth of this segment.

Overall, Broadcom’s strong quarterly performance and optimistic outlook have solidified its position as a top player in the semiconductor industry. With a focus on AI and a commitment to returning cash to shareholders, the company is well-positioned for future success.