Broadcom Stock Surges on Strong Revenue Performance and Announces Stock Split

Broadcom reported second-quarter revenue of $12.49 billion, beating analyst estimates. However, earnings came in lower than projected, at $2.12 billion, or $4.42 per share. The company highlighted that revenue from artificial intelligence products hit a record high of $3.1 billion during the quarter. In response to the strong performance, Broadcom announced a 10-for-1 forward stock split to make ownership more accessible. Shareholders of record as of July 11 will receive nine additional shares for each share they own after the market closes on July 12, with split-adjusted trading beginning on July 15.

CEO Hock Tan attributed the company’s success to demand for AI and vmware products. Investor response was positive, with Broadcom shares rising more than 12% to $1,687.20 in extended trading following the earnings release.

In summary, Broadcom’s second-quarter results showcased strong revenue growth driven by AI products, despite earnings falling short of expectations. The company’s decision to implement a stock split reflects confidence in its future performance and aims to make ownership more accessible to investors and employees. Investors reacted positively to the news, with Broadcom shares experiencing a significant increase in after-hours trading.

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