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Broadcom Announces 10-for-1 Stock Split & Beats Earnings Estimates

Broadcom impressed investors with its second fiscal quarter earnings, surpassing analysts’ expectations. The company reported an adjusted earnings per share of $10.96, beating the anticipated $10.84, and revenue of $12.49 billion, surpassing the forecasted $12.03 billion. Additionally, Broadcom announced a significant 10-for-1 stock split, set to commence trading on a split-adjusted basis from July 15, boosting the stock by approximately 10% in after-hours trading.

The chipmaker, benefiting from the AI boom, recorded $3.1 billion in AI product sales. CEO Hock Tan highlighted ongoing investments from hyperscale customers in AI accelerators. Broadcom's strategic collaboration with Google, particularly involving custom AI chips, underscores its pivotal role in the tech industry's AI advancements.

The acquisition of VMware for $69 billion further fueled Broadcom's growth, with VMware's revenue significantly contributing to a 43% annual increase in overall revenue for the quarter. Excluding VMware, Broadcom’s revenue still marked a 12% year-over-year increase.

Projected sales for fiscal 2024 are around $51 billion, slightly above consensus expectations of $50.42 billion. This positive outlook reflects Broadcom's robust position in the tech market, driven by its innovative AI and enterprise software solutions.

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Broadcom’s financial performance and strategic moves position it strongly for continued growth, solidifying its status as a key player in the chipmaking and AI industries.

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