The networking chipmaker also reported better-than-expected quarterly results and announced a stock split
Broadcom $AVGO’s stock surged to a record high during Thursday’s trading after the networking chipmaker increased its AI revenue forecast and announced a stock split following a stronger-than-expected earnings report. As of mid-morning, it was the top-performing stock on the S&P 500 and Nasdaq $NDAQ, up over 13% at $1,696.
The company released its second-quarter revenue on Wednesday after the closing bell, beating analysts’ estimates. The company announced a revenue of $12.49 billion for the fiscal second quarter of 2024, showing a 43% increase from the previous year and surpassing analysts’ expectations. Net income totaled $2.12 billion, or $4.42 per share, a decrease from $3.48 billion, or $8.15 per share, from the previous year, falling below analysts’ expectations.
The company stated that artificial intelligence drove the revenue increase. “Broadcom’s second-quarter results were once again driven by AI demand and VMware,” said Hock Tan, President and CEO of Broadcom. “Revenue from our AI products was a record $3.1 billion during the quarter.”
Moreover, the company announced a 10-for-1 stock split. After the market closes on July 11, stockholders will receive nine additional shares for each share held after the market closes on July 12. And the split-adjusted trading will start on July 15.
A quarterly cash dividend of $5.25 per share has been approved by the company’s board of directors. After the market closes on June 24, the stockholders will receive the dividend on June 28, per the release.
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