US EditionBroadcom rises as $100 billion AI forecast signals gains in Nvidia-dominated market
Broadcom's AI chip revenue grew 106% in Q1 to $8.4 billion with a $10 billion share repurchase program announced, signaling strong demand and secured supply.
- On Wednesday, Broadcom Inc. reported fiscal Q1 revenue of $19.31 billion and adjusted EPS of $2.05, beating estimates, while CEO Hock Tan said AI chip sales could exceed $100 billion next year.
- Driven by AI demand, Broadcom's Q1 AI semiconductor revenue grew 106% to $8.4 billion, supported by multiyear collaborations with six custom-XPU customers and secured supply for scaling shipments.
- Looking ahead, Broadcom expects AI chip revenue of $10.7 billion in Q2 and fiscal second-quarter revenue of $22.00 billion ending May 3, while the board authorized a $10 billion share repurchase program and the company held $14.17 billion in cash.
- Market data show trading volume reached 50.1 million shares, about 62% above average, as Broadcom shares closed Thursday at $332.6, prompting analysts to revise the fiscal 2027 AI sales consensus to $96.6 billion.
- In the wider market, Nvidia is expected to generate $333 billion in fiscal 2027, while investors watch if AI capex sustains Broadcom's targets amid bubble concerns.
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Cramer Names Broadcom "An Undervalued Stock", Despite Recent Declines
Quick Read Broadcom (AVGO) is down 18% from December highs despite 106% AI revenue growth, a PEG ratio of 0.87, $8.01B free cash flow, a $10B buyback authorization, and analyst price target of $453.06. Jim Cramer argues the market has not caught up to Broadcom’s fundamentals, pointing to record earnings and elevated growth rates as evidence of undervaluation relative to the stock’s pullback. Are you ahead, or behind on retirement? SmartAsset'…
Broadcom, which forecasts that artificial intelligence (AI) revenue will exceed $100 billion (approximately 145 trillion won) next year, announced that it has secured both the high-bandwidth memory (HBM) required for AI chips and TSMC's advanced process production line. This allays concerns about the memory semiconductor shortage and TSMC's limited production capacity, which are hindering the growth of the AI industry. Some analysts suggest that…
Stock Market Today, March 5: Broadcom Rallies as as AI Chip Demand Strengthens Revenue Outlook
Broadcom (NASDAQ:AVGO), a provider of semiconductor devices and infrastructure software, closed Thursday at $332.6, up 4.75%. The stock moved higher after premarket earnings and guidance highlighted accelerating AI-driven revenue growth. Investors are now assessing whether demand for AI infrastructure can support Broadcom’s long-term sales targets. The company’s trading volume reached 50.1 million shares, which is about 62% above compared with i…
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