Broadcom announces $10 billion stock buyback program, driving stock value up

From Nasdaq: 2025-04-08 15:00:00

Broadcom Inc. (AVGO) has announced a $10 billion share buyback program, leading to a 3% increase in stock value. The company’s CEO is optimistic about its future prospects, especially in infrastructure software and generative AI for hyperscalers. AVGO’s XPUs are gaining popularity, with a market size expected to reach $60-90 billion by 2027.

With first-quarter fiscal 2025 revenues of $14.9 billion and an EPS increase of 45.5% from the previous year, Broadcom seems poised for growth. The company’s net profit margin of 18.5% surpasses the industry average, indicating financial stability. Brokers have raised AVGO’s short-term price target by 70.4% to $249.25.

Brokers are optimistic about Broadcom’s growth potential, with a Zacks Rank #2 (Buy) and an EPS estimate up 15% from last year. The company’s dividend payout has increased by 13% in the past five years, and it generated a solid free cash flow of $19.4 billion in fiscal 2024. AVGO has a history of strong performance and financial stability, making it an attractive investment option.



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