Broadcom Stock Pops as Earnings and Outlook Beat Expectations on Strong Demand for Custom Artificial Intelligence (AI) Chips
Shares of Broadcom (NASDAQ: AVGO) gained 12.8% in Thursday's after-hours trading, following the semiconductor and infrastructure software maker's release of its report for the first quarter of fiscal year 2025 (ended Feb. 2).The stock's rise is attributable in part to the quarter's revenue and earnings, along with second-quarter revenue guidance beating Wall Street's expectations. In addition, the stock got a boost from very bullish comments CEO Hock Tan made on the earnings call.The relative strength of these catalysts can be teased out based on the stock's movement during after-hours trading. Shares had gained about 9% after the earnings release up through 5 p.m. ET, when the call started. They then shot up more than 7% about five minutes into the call (though eventually gave back some of this gain), which is when Tan shared news about the company's custom artificial intelligence (AI) chip business. His comments follow below.Continue reading
Shares of Broadcom (NASDAQ: AVGO) gained 12.8% in Thursday's after-hours trading, following the semiconductor and infrastructure software maker's release of its report for the first quarter of fiscal year 2025 (ended Feb. 2).
The stock's rise is attributable in part to the quarter's revenue and earnings, along with second-quarter revenue guidance beating Wall Street's expectations. In addition, the stock got a boost from very bullish comments CEO Hock Tan made on the earnings call.
The relative strength of these catalysts can be teased out based on the stock's movement during after-hours trading. Shares had gained about 9% after the earnings release up through 5 p.m. ET, when the call started. They then shot up more than 7% about five minutes into the call (though eventually gave back some of this gain), which is when Tan shared news about the company's custom artificial intelligence (AI) chip business. His comments follow below.
