From CNBC: 2024-06-12 19:35:49

Broadcom shares surged over 14% in after-hours trading following a strong quarterly report with revenue hitting $12.5 billion, beating estimates. The company also announced a 10-for-1 stock split and raised its full-year outlook. CEO Hock Tan’s value-creating M & A strategy and focus on AI put Broadcom in a strong position. The company is also shareholder-friendly, increasing dividends and buybacks. Revenue for the second quarter of fiscal 2024 increased 43% year over year. Additionally, adjusted EPS exceeded expectations at $10.96. Broadcom continues to see growth in AI and custom chip businesses, with networking revenue up 44% year over year to $3.8 billion. Despite challenges in legacy semiconductor businesses, Tan sees positive signs for recovery. Broadcom’s focus on AI and networking, along with its strategic acquisitions, are key factors driving its success. With the stock split, Broadcom aims to make its shares more accessible to investors and employees. The company’s strong second-quarter performance and guidance led to a revised price target of $1,900 per share. This marks a significant increase from its previous target of $1,550. Broadcom’s revenue and adjusted EBITDA outlook for the year have also been raised, exceeding estimates and indicating a positive trajectory for the company.



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