Why Broadcom Stock Rallied on Thursday | The Motley Fool

Shares of Broadcom (AVGO +3.10%) climbed on Thursday, gaining as much as 5.9%. As of 1:16 p.m. ET, the stock was still up 3.5%, despite a general market downtrend.

The catalyst that sent the semiconductor specialist higher was robust results fueled by strong demand for its artificial intelligence (AI) hardware.

A big boost from AI

In its fiscal 2026 first quarter (ended Feb. 1), Broadcom generated revenue that rose 29% year over year to $19.3 billion, driving adjusted earnings per share (EPS) to $2.05, up 28%.

For context, analysts’ consensus estimates called for revenue of $19.14 billion and adjusted EPS of $2.02, so Broadcom surpassed both estimates by a wide margin.

The company cited robust demand for its AI hardware driving its financial gains, and the results backed that up. AI-related revenue of $8.4 billion — a record — soared 106% year over year, accounting for 44% of Broadcom’s total revenue.

Today’s Change

(3.10%) $9.84

Current Price

$327.37

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