Broadcom’s stock has surged by about 20% this week following the release of its fiscal 2024 second-quarter results. The company’s shares have gained over 50% so far this year, driven by the rise of artificial intelligence (AI) and its acquisition of VMware. Broadcom is benefiting from the increasing spending on AI-related products, such as data center infrastructure for AI use cases. The company reported record revenue from AI products of over $3 billion in its latest quarterly results, contributing to total revenue of $12.5 billion, a 43% year-over-year increase. Management raised its full-year revenue expectations to $51 billion, anticipating higher profitability as well. This growth trajectory mirrors that of Nvidia, which recently announced a stock split and raised its revenue expectations, signaling confidence in continued strong performance.
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The Reason Behind Broadcom Stock’s Surge This Week | The Motley Fool
