Broadcom is conquering the market: AI boom shoots stock up 40%
Broadcom, a leading provider of semiconductors, enterprise software solutions and security systems, saw its share price rise more than 40% during the week. What's behind this impressive growth?
Several factors are behind this rapid growth - better-than-expected financial results for the fourth fiscal quarter of 2024 and an optimistic outlook for the future. In addition, several major Wall Street institutions have upgraded their ratings on Broadcom stock to $AVGO.
Let's take a look at the key factors behind this upside, and what it means for the future of the company and its stock.
Broadcom's Q4 results
Broadcom released its results for Q4 of fiscal year 2024 (fiscal year ends in October). Revenue was $14.05 billion, while adjusted earnings per share were $1.42. Analysts were expecting sales of $14.09 billion and earnings of $1.38 per share. The surprise on the earnings side was a result of the huge demand for the company's AI products, which has seen rapid growth in recent years.
The $69…
A long time ago I was very skeptical about this company, but it's clear that the company is really thriving and the business is doing great.