Broadcom Inc. (NASDAQ:AVGO) shares are trading higher Thursday after the company reported better-than-expected first-quarter financial results on Wednesday after the market closed. Also, the company issued second-quarter sales guidance above estimates and announced a new $10 billion share repurchase program.
Broadcom Posts Double Beat As AI Demand Surges
Broadcom reported adjusted earnings per share of $2.05, beating the consensus estimate of $2.02. In addition, the company reported revenue of $19.31 billion, beating the consensus estimate of $19.19 billion and increasing 29% year-over-year.
"Q1 AI revenue of $8.4 billion grew 106% year-over-year, above our forecast, driven by robust demand for custom AI accelerators and AI networking. Our AI revenue growth is accelerating, and we expect AI semiconductor revenue to be $10.7 billion in Q2," said Hock Tan, president and CEO of Broadcom.
The company ended the quarter with $14.17 billion in cash and cash equivalents. Broadcom's board also authorized a new $10 billion share repurchase program through Dec. 31, 2026.
Looking ahead, Broadcom expects second-quarter revenue of $22.00 billion, versus the consensus estimate of $20.67 billion.
Consensus Ratings And Analyst Action
The company has a consensus rating of Buy and a consensus price target of $418.59. Recent analyst action include:
- B of A Securities analyst Vivek Arya maintained a Buy rating on Broadcom and lowered the price target from $500 to $450.
- Benchmark analyst Cody Acree reiterated a Buy rating on Broadcom and maintained a $485 price target.
Broadcom Shares Rise
AVGO Price Action: At the time of publication, Broadcom shares are trading 6.05% higher at $336.74, according to data from Benzinga Pro.
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