Shares of Broadcom Inc. (AVGO) surged over 13% in pre-market trading on Thursday, reaching $1,694, following the release of better-than-expected second-quarter results driven by strong AI demand. In addition, the semiconductor giant has upgraded its full-year revenue forecast, surpassing Wall Street estimates.
The company also announced a ten-for-one forward stock split, with trading on a split-adjusted basis set to commence on July 15.
Excluding one-time items, Broadcom reported second-quarter earnings of $5.394 billion, or $10.96 per share, exceeding the average analyst estimate of $10.84 per share, as surveyed by Thomson Reuters.
However, net income fell to $2.121 billion, or $4.42 per share, down from $3.481 billion, or $8.15 per share, in the same period last year.
Quarterly revenue soared 43% year over year to $12.487 billion, fueled by AI demand and contributions from VMware. AI product revenue accounted for $3.1 billion of the total. The consensus revenue estimate was $12.03 billion.
Looking ahead, Broadcom now anticipates full-year revenue to be approximately $51 billion, an increase from its prior outlook of nearly $50 billion. Analysts had projected revenue of $50.42 billion for the year.
Broadcom shares closed at $1,495.51 on Wednesday, up 2.36%. The stock has traded within a range of $795.09 to $1,505.80 over the past year.
