Broadcom Surges on Strong AI Outlook, Stock Split
Broadcom shares are soaring Thursday after the chipmaker's beat-and-raise quarter and news it is splitting its stock. Here's what you need to know.


Broadcom (AVGO) stock jumped more than 14% out of the gate Thursday after the chipmaker beat expectations for its fiscal second quarter, raised its full-year outlook and announced a 10-for-1 stock split.
In the quarter ended May 5, Broadcom's revenue increased 43% year-over-year to $12.5 billion, driven by a nearly tripling of revenue in its Infrastructure Software segment to $5.3 billion. The company said earnings per share (EPS) rose 6.2% from the year-ago period to $10.96.
"Broadcom's second quarter results were once again driven by artificial intelligence (AI) demand and VMware," Broadcom CEO Hock Tan said in a statement. "Revenue from our AI products was a record $3.1 billion during the quarter. Infrastructure software revenue accelerated as more enterprises adopted the VMware software stack to build their own private clouds."
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.

Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Broadcom completed its acquisition of cloud software firm VMware in November 2023.
The company's top- and bottom-line results beat analysts' expectations. According to CNBC, Wall Street was anticipating revenue of $12 billion and earnings of $10.84 per share.
As a result of its strong performance in the first half of its fiscal year, Broadcom raised its full-year outlook. The company now anticipates revenue of approximately $51 billion, up from its previous estimate of $50 billion and ahead of analysts' expectations of $50.4 billion.
Broadcom also announced a 10-for-1 stock split in order "make ownership of Broadcom stock more accessible to investors and employees." Based on AVGO's current price of roughly $1,700, shares will be closer to around $170 once they start trading on a split-adjusted basis at the July 15 open.
Is Broadcom stock a buy, sell or hold?
According to S&P Global Market Intelligence, the consensus analyst target price for the tech stock is $1,751.48, representing implied upside of over 3% to current levels. Additionally, the consensus recommendation is Buy. However, analysts may revise their targets higher following the strong earnings release.
One of the firms raising their target price on AVGO stock following its earnings release is Susquehanna Financial Group, which maintained a Positive rating (equivalent to Buy) and raised its price target to $2,000 from $1,650.
"Broadcom is one of the best integrators in the business, continuing to prove the economies of scale are a viable driver of earnings power for those that can executive in the semiconductor industry," Susquehanna analyst Christopher Rolland said in a note.
Susquehanna's new $2,000 price target represents implied upside of about 18% to current levels.
Related Content
- Kiplinger's Earnings Calendar for This Week
- Should You Invest in Nvidia After Its Stock Split?
- Analysts' Top S&P 500 Stocks to Buy Now
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Joey Solitro is a freelance financial journalist at Kiplinger with more than a decade of experience. A longtime equity analyst, Joey has covered a range of industries for media outlets including The Motley Fool, Seeking Alpha, Market Realist, and TipRanks. Joey holds a bachelor's degree in business administration.
-
The Shutdown Standoff Is Heading for Its Next Big Test
A key mid-October deadline could intensify the shutdown fight in Washington, and the fallout could soon hit workers and your wallet.
-
Should You Buy Gold as It Tops $4,000? Here's What the Experts Say
Rate cuts, a weak dollar and macro uncertainty have helped create a "perfect storm" for gold this year. Should investors add exposure or is it too late to buy?
-
Should You Buy Gold as It Tops $4,000? Here's What the Experts Say
Rate cuts, a weak dollar and macro uncertainty have helped create a "perfect storm" for gold this year. Should investors add exposure or is it too late to buy?
-
Preferred Bank Stocks: The Investment Retirees (and Others) May Be Missing Out On
Most large banks issue preferred stocks that pay out fixed dividends, often with higher yields than bonds. Should you make room for them in your portfolio?
-
Don't Let Your Equity Compensation Trip You Up: A Financial Expert's Guide
Stock options, RSUs and other executive perks can come with some serious strings attached. To avoid a nasty tax surprise, you need a plan.
-
Rally Fades on Mixed AI Revolution News: Stock Market Today
All three main U.S. equity indexes opened higher but closed lower as a seven-session winning streak for the S&P 500 came to an end.
-
The Spendthrift Trap: Here's One Way to Protect Your Legacy From an Irresponsible Heir
A spendthrift clause in an estate plan can protect an inheritance from a financially irresponsible child's debts and poor decisions.
-
Adapting to AI's Evolving Landscape: A Survival Guide for Businesses
Like it or not, AI is here to stay, and opting out could be disastrous for your organization. Instead, focus on what you can control and be flexible, as AI is still evolving.
-
S&P, Nasdaq Hit New Highs: Stock Market Today
A late-day rally wasn't enough to lift the Dow into the green as its six-session winning streak came to an end.
-
AMD Stock Surges on OpenAI Deal
Advanced Micro Devices could see tens of billions of dollars in new revenue from the ChatGPT maker as the AI infrastructure buildout accelerates.