Broadcom Inc. (NASDAQ)
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Broadcom (AVGO) is shining with more than 18% increase in its market caps after-hours trading on March 6. The price exceeded $210 for the first time after three weeks of overall correction, when the stock dropped by more than $50 per unit, so that overall losses at yesterday's local dips below $180 reached 28% of its peak value above $250. Broadcom thus rejoins the Wall Street club of trillionaires and is unlikely to stop climbing. A gradual return to $250 with a further move higher looks like it's only a matter of time. Overall volatility in tech stocks may play a role for a while, but Broadcom's quarterly business results are too good, so that even a pessimists' camp feels impossible to ignore them.
Broadcom's equity per share (EPS) topped consensus estimates by 6%, providing +12.6% QoQ and +45.5% YoY, despite its revenue climbed only 2% above analyst poll forecasts to $14.92 billion during the last three months ended February 2, compared to $14.05 billion in the previous quarter and less than $12 billion in the same period one year ago. A nearly 25% annual surplus in sales, which already sounds exciting, brought in almost twice the percentage gain in profits. Purely AI revenue grew 77% YoY to $4.1 billion. The company's core segment, which is semiconductor solutions, rose even faster by 55% YoY to $8.2 billion, while infrastructure software sales added 45% to $6.7 billion. This undoubtedly confirmed expansion as rapid and comprehensive.
Besides, the company reported upbeat guidance citing red hot AI-led chip demand. The company CEOs projected the current quarter revenue at $14.9 billion to top preliminary market consensus of $14.73 billion, including sales of $4.4 billion in the nearest three months for Broadcom-developed and produced AI semiconductors on hyperscale customers which are rushing to invest in building data centers, with the company's exposure in the AI market being well diversified with multiple customers. ASICS, or application-specific integrated circuits, are chips designed for specific tasks or applications, which forms one of Broadcom's favourable specialties as more companies are shifting from off-the-shelf chips to in-house processors. Broadcom's EBITDA (earnings before interest depreciation, and amortization) was also guided at 66% of its supposed revenue for 2025.
The U.S. Stargate project with SoftBank, OpenAI and Oracle among major equity funders for $500 billion would potentially form one of the pillars for domestic demand. Broadcom is an industry leader in optical connectivity technologies needed to build large-scale AI networks. Broadcom together with Nvidia is also evaluating Intel's most advanced manufacturing process, running test wafers through the Intel factories.
Broadcom Inc. (NASDAQ)
| Ticker | AVGO |
| Contract value | 1 share |
| Maximum leverage | 1:1 |
| Date | Short Swap (%) | Long Swap (%) |
|---|
| Minimum transaction volume | 0.0001 lot |
| Maximum transaction volume | 10000 lots |
| Hedging margin | 0% |
| USD Exposure | Max Leverage Applied | Floating Margin |
|---|
