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Broadcom has initiated a $10 billion share buyback program, effective through December 31, following a 34% decline in its stock this year amid tech sector volatility. The move, which resulted in a 3% rise in shares during late trading, reflects CEO Hock Tan's confidence in the company's chip and infrastructure software business.This buyback comes at a time of significant concerns over semiconductor tariffs, with the PHLX Semiconductor Index recently dropping 7%. Broadcom's strategy balances shareholder returns with investments in artificial intelligence, reporting a 77% year-over-year increase in AI revenue to $4.1 billion. Major tech firms are increasingly turning to Broadcom for custom AI chips, positioning the company as a competitor to Nvidia in the evolving AI chip market.
Broadcom's stock surged 12% in premarket trading on March 7, following CEO Hock Tan's projection of $4.4 billion in Q2 revenue for its AI semiconductor division. This increase is fueled by hyperscale customers investing in custom AI chips, as tech firms seek alternatives to Nvidia's expensive processors. Despite a significant rise in 2024, Broadcom's stock has dropped about 23% in 2025, with a forward price-to-earnings ratio of 26.58, higher than Nvidia's 23.46 and Marvell's 24.50.
Broadcom Inc. projects a revenue of approximately $14.9 billion for the quarter ending May 4, driven by strong demand for AI chips, surpassing analysts' expectations. In the first quarter, the company reported $14.92 billion in revenue, a 25% increase, with AI-related sales expected to reach $4.4 billion this quarter. The semiconductor division generated $8.21 billion, reflecting an 11% increase.
New England Asset Management holds significant shares in Microsoft and Alphabet, both of which are leveraging AI to enhance their cloud services. Microsoft Azure commands a 20% market share, while Google Cloud captures 10%. Both companies are also heavily invested in AI partnerships and applications, with Alphabet maintaining a dominant position in global internet search.
Broadcom's stock surged over 20% after CEO Hock Tan highlighted a potential $60 billion to $90 billion revenue opportunity in AI chips over the next three years, driven by three unnamed hyperscaler customers. The company also added two more customers reportedly including OpenAI and Apple, as it aims to capitalize on the growing AI market. While AI chip sales soared 150% to $3.7 billion, non-AI semiconductor revenue fell 23%, indicating a significant shift in the company's focus towards AI technology.
Broadcom's stock surged 24%, propelling its market cap past $1 trillion for the first time, following strong fourth-quarter results that exceeded expectations. The company reported $14.05 billion in revenue, with AI revenue skyrocketing 220% to $12.2 billion, as CEO Hock Tan announced custom AI chip developments for major cloud clients. Analysts expressed optimism about Broadcom's AI prospects, raising price targets and reiterating buy ratings despite competitive challenges.
Broadcom's stock surged over 21% after the company projected AI chip sales could reach $60 billion to $90 billion by fiscal 2027, up from $12.2 billion in 2024. CEO Hock Tan highlighted strong demand from major clients like Google, Meta, and ByteDance, with additional potential from Apple and OpenAI. Analysts responded positively, raising price targets and noting Broadcom's competitive edge in the AI chip market.
US stocks surged on Friday, led by technology shares following Broadcom's impressive earnings report, which revealed a 220% increase in AI revenue, driving its stock up 18%. Investors are now focused on the upcoming Federal Reserve meeting, with a 96% chance of a 25 basis point rate cut anticipated.
Broadcom's earnings report highlights a robust demand for AI computing, with CEO Hock Tan projecting a serviceable addressable market of $60 billion to $90 billion by 2027, leading to a 17% surge in shares. The S&P Short Range Oscillator indicates a potential market bottom, currently at minus 2.19, suggesting an oversold condition below minus 4. Costco's recent earnings exceeded expectations, prompting several price target increases for the stock, which is nearing record highs.
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