Earnings Mastery
  • Politics
  • Business
  • Investing
  • World
No Result
View All Result
  • Politics
  • Business
  • Investing
  • World
No Result
View All Result
Earnings Mastery
No Result
View All Result
Home Investing

Broadcom shares surge 10% after Q1-print: buy, sell or hold?

March 8, 2025
in Investing
Broadcom shares surge 10% after Q1-print: buy, sell or hold?
0
SHARES
8
VIEWS
Share on FacebookShare on Twitter

Broadcom reported first-quarter earnings on Thursday that exceeded analysts’ expectations, driven by strong AI-related revenue growth.

The semiconductor giant also provided an upbeat revenue forecast for the current quarter, sending its stock over 10% higher in extended trading.

Broadcom’s Q1 earnings

The company posted adjusted earnings per share of $1.60, surpassing the consensus estimate of $1.49.

Revenue came in at $14.92 billion, exceeding the expected $14.61 billion.

Broadcom’s second-quarter revenue guidance of approximately $14.9 billion also came in ahead of Wall Street’s forecast of $14.76 billion.

Revenue for the latest quarter grew 25% from $11.96 billion in the same period last year.

Net income rose to $5.5 billion, or $1.14 per share, up significantly from $1.33 billion, or 28 cents per share, in the year-ago period.

Broadcom’s stock had been down about 23% in 2025 before the earnings report, partly due to investor concerns over President Donald Trump’s tariff policies.

Broadcom recorded $4.1 billion in AI-related revenue in the first quarter, reflecting a 77% year-over-year increase.

AI sales are included in the company’s semiconductor solutions segment, which reported an 11% annual growth to $8.21 billion.

Broadcom CEO Hock Tan stated that the company anticipates “continued strength in AI semiconductor revenue.”

The company projects AI revenue to reach $4.4 billion in the second quarter, representing a 44% year-over-year growth.

In December, Broadcom announced it was developing custom AI chips with three large cloud customers.

Tan added on Thursday that the company has since “deeply engaged” with two additional hyperscalers and is working with four other potential customers on custom AI chip development.

Wall Street analysts on Broadcom

KeyBanc Capital Markets raised its price target on Broadcom to $275 from $260, maintaining an Overweight rating. A

Analysts cited Broadcom’s AI revenue strength, which exceeded expectations by $300 million, driven by robust networking demand.

Bernstein reaffirmed its Outperform rating with a price target of $250, noting Broadcom’s strong gross margins of 79.1% and lower-than-expected operating expenses.

While the core networking and storage businesses saw slower recovery, AI semiconductor sales offset those weaknesses.

Raymond James analyst Srini Pajjuri maintained a Market Perform rating, expressing caution despite Broadcom’s strong execution and customer engagement.

Pajjuri highlighted competition from Nvidia in the custom ASIC market, warning that potential customers may not move forward with large-scale deployments.

Broadcom’s earnings report and upbeat AI outlook signal strong demand for its semiconductor solutions, but ongoing competition and broader market conditions remain factors to watch.

CFRA also maintained a Buy rating on Broadcom Limited, citing the potential for AI semiconductor revenue to enhance Broadcom’s business model over the next three years.

CFRA also expects continued strong performance in the software segment, particularly following the one-year anniversary of the VMware acquisition.

The post Broadcom shares surge 10% after Q1-print: buy, sell or hold? appeared first on Invezz

Previous Post

Europeans are embracing EVs while Tesla is imploding: here’s why

Next Post

Walgreens to go private in $10B deal with Sycamore: how the pharmacy giant fell from grace

Next Post
Walgreens to go private in $10B deal with Sycamore: how the pharmacy giant fell from grace

Walgreens to go private in $10B deal with Sycamore: how the pharmacy giant fell from grace

    Become a VIP member by signing up for our newsletter. Enjoy exclusive content, early access to sales, and special offers just for you! As a VIP, you'll receive personalized updates, loyalty rewards, and invitations to private events. Elevate your experience and join our exclusive community today!


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest

    Japan’s Nikkei 225 hits a record high, crossing 44,000 for the first time

    September 9, 2025
    Morning brief: France seeks new PM; gold hits record; Jane Street’s appeal starts

    Morning brief: France seeks new PM; gold hits record; Jane Street’s appeal starts

    September 9, 2025
    OPEC+ pivots to offense: gulf producers prioritise market share

    OPEC+ pivots to offense: gulf producers prioritise market share

    September 9, 2025
    Teck Resources stock price surges ahead of Anglo American acquisition

    Teck Resources stock price surges ahead of Anglo American acquisition

    September 9, 2025
    SEI extends gains as SEC formally acknowledges Canary’s Sei ETF application

    SEI extends gains as SEC formally acknowledges Canary’s Sei ETF application

    September 9, 2025
    Permira and Blackstone invest $525 million in Dubai’s Property Finder

    Permira and Blackstone invest $525 million in Dubai’s Property Finder

    September 9, 2025

    Disclaimer: EarningsMastery.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Popular

    Amazon launches AWS in New Zealand with NZ$7.5bn investment

    September 2, 2025

    Latest

    Japan’s Nikkei 225 hits a record high, crossing 44,000 for the first time

    September 9, 2025
    Morning brief: France seeks new PM; gold hits record; Jane Street’s appeal starts

    Morning brief: France seeks new PM; gold hits record; Jane Street’s appeal starts

    September 9, 2025
    OPEC+ pivots to offense: gulf producers prioritise market share

    OPEC+ pivots to offense: gulf producers prioritise market share

    September 9, 2025
    • About us
    • Privacy Policy
    • Terms & Conditions

    Copyright © 2025 earningsmastery.com | All Rights Reserved

    No Result
    View All Result
    • Politics
    • Business
    • Investing
    • World

    Copyright © 2025 earningsmastery.com | All Rights Reserved