Broadcom reported strong quarterly results with revenue reaching $12.5 billion, beating analyst estimates. The company’s adjusted earnings per share grew to $10.96, surpassing expectations. Broadcom is benefiting from AI-related sales growth and raised its full-year outlook to $11 billion. The company’s CEO, Hock Tan, has a reputation for value-creating M&A strategies, making Broadcom a strong player in the semiconductor industry. The company’s stock split and strong financial performance have led to a rise in share price, reaching an all-time high and gaining 34% year-to-date. In the quarter, Broadcom saw growth in semiconductor solutions, networking, and infrastructure software, with particular strength in AI-related sales. Despite weakness in legacy semiconductor businesses like wireless and storage connectivity, management is optimistic about a recovery in the second half of the year. The integration of VMware, acquired last year, is progressing well and is expected to drive further revenue growth. Broadcom’s strong cash generation allowed for investments in share repurchases, dividends, and debt retirement. The company raised its revenue and adjusted EBITDA outlook for the year, with a focus on AI revenue growth. Overall, Broadcom’s solid performance and strategic moves continue to position it as a strong player in the semiconductor industry.
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https://www.cnbc.com/2024/06/12/blistering-ai-demand-drives-a-beat-and-raise-at-our-other-chipmaker-broadcom.html
