Broadcom (AVGO) Stock Surges Over 4.5% Post Earnings Call

Broadcom (AVGO) reported a strong quarter with revenue of $15.95 billion, up 22% year over year, and adjusted earnings of $1.69 per share. CEO Hock Tan revealed $10 billion in custom AI orders from a new customer, leading to a stock surge of over 4.5%. Tan expects AI-related revenue to hit $6.22 billion in the current quarter. The company’s AI business is thriving, with revenue growing 63% year over year to $5.2 billion.

Broadcom’s legacy semiconductor businesses are also showing improvement, with broadband and wireless segments expected to pick up in the current quarter. The company’s Infrastructure Software segment saw revenue growth of about 17% year over year to $6.79 billion, benefiting from the VMWare acquisition.

For the fourth fiscal quarter, Broadcom forecasts total revenue of $17.4 billion, with AI revenue expected to grow to $6.2 billion, representing 66% year-over-year growth. Adjusted EBITDA is projected to be approximately $11.658 billion, ahead of estimates. CEO Hock Tan’s plans to stay on until at least 2026 and strong demand for AI solutions are driving Broadcom’s growth, leading to an increase in the company’s stock price.