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Broadcom's AI Surge, Stock Split Announced

Published by MEXEM EUROPE

June 13, 2024 2:01 PM
(GMT+2)

Broadcom's {{ m-tag option="price" ticker="AVGO" currency="USD" }} strategic positioning in the semiconductor industry results from its ability to capitalize on the growing demand for chips in various sectors, including data centers, networking, and wireless communications.

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Financial Performance:
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  • Broadcom raises annual revenue forecast for AI-linked chips by 10%
  • New projection: $11 billion in 2024 (previously $10 billion)
  • Recorded $3.1 billion in revenue from AI products in Q2 2024
  • Total Q2 2024 revenue: $12.49 billion
  • Surpassed analysts' expectations of $12.03 billion
  • Earnings per share (EPS): $10.96
  • Exceeded anticipated EPS of $10.84

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Stock Split Announcement:

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In a strategic move to make its shares more accessible to retail investors, Broadcom announced a 10-for-1 stock split, set to begin trading on a split-adjusted basis on July 15. This decision follows a year in which Broadcom's stock has rallied over 30% after nearly doubling in 2023. Following the announcement, Broadcom's shares surged by 12% in extended trading, booming in the AI market.

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Strategic Positioning:

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The company has attracted significant orders from large cloud providers, including Google and Meta, aiming to reduce reliance on Nvidia's processors. Broadcom's semiconductor solutions segment saw a 6% revenue increase to $7.20 billion in the quarter. Broadcom's Infrastructure Software Segment acquisition of VMware has substantially boosted its infrastructure software segment, doubling its revenue and contributing to overall sales growth.

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The information on mexem.com is for general informational purposes only. It should not be regarded as investment advice. Investing in stocks involves risk. A stock's past performance is not a reliable indicator of its future performance. Always consult a financial advisor or trusted sources before making any investment decisions.

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