{"id":37593,"date":"2025-03-08T11:36:01","date_gmt":"2025-03-08T11:36:01","guid":{"rendered":"https:\/\/quickassetsmarket.com\/index.php\/2025\/03\/08\/broadcom-shares-surge-10-after-q1-print-buy-sell-or-hold\/"},"modified":"2025-03-08T11:36:01","modified_gmt":"2025-03-08T11:36:01","slug":"broadcom-shares-surge-10-after-q1-print-buy-sell-or-hold","status":"publish","type":"post","link":"https:\/\/quickassetsmarket.com\/index.php\/2025\/03\/08\/broadcom-shares-surge-10-after-q1-print-buy-sell-or-hold\/","title":{"rendered":"Broadcom shares surge 10% after Q1-print: buy, sell or hold?"},"content":{"rendered":"
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Broadcom reported first-quarter earnings on Thursday that exceeded analysts\u2019 expectations, driven by strong AI-related revenue growth. <\/p>\n

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

Broadcom’s Q1 earnings<\/h2>\n

The company posted adjusted earnings per share of $1.60, surpassing the consensus estimate of $1.49. <\/p>\n

Revenue came in at $14.92 billion, exceeding the expected $14.61 billion. <\/p>\n

Broadcom\u2019s second-quarter revenue guidance of approximately $14.9 billion also came in ahead of Wall Street\u2019s forecast of $14.76 billion.<\/p>\n

Revenue for the latest quarter grew 25% from $11.96 billion in the same period last year. <\/p>\n

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.<\/p>\n

Broadcom\u2019s stock had been down about 23% in 2025 before the earnings report, partly due to investor concerns over President Donald Trump\u2019s tariff policies.<\/p>\n

Broadcom recorded $4.1 billion in AI-related revenue in the first quarter, reflecting a 77% year-over-year increase. <\/p>\n

AI sales are included in the company\u2019s semiconductor solutions segment, which reported an 11% annual growth to $8.21 billion. <\/p>\n

Broadcom CEO Hock Tan stated that the company anticipates “continued strength in AI semiconductor revenue.”<\/p>\n

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

In December, Broadcom announced it was developing custom AI chips with three large cloud customers. <\/p>\n

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.<\/p>\n

Wall Street analysts on Broadcom<\/h2>\n

KeyBanc Capital Markets raised its price target on Broadcom to $275 from $260, maintaining an Overweight rating. A<\/p>\n

Analysts cited Broadcom\u2019s AI revenue strength, which exceeded expectations by $300 million, driven by robust networking demand.<\/p>\n

Bernstein reaffirmed its Outperform rating with a price target of $250, noting Broadcom\u2019s strong gross margins of 79.1% and lower-than-expected operating expenses. <\/p>\n

While the core networking and storage businesses saw slower recovery, AI semiconductor sales offset those weaknesses.<\/p>\n

Raymond James analyst Srini Pajjuri maintained a Market Perform rating, expressing caution despite Broadcom\u2019s strong execution and customer engagement. <\/p>\n

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

Broadcom\u2019s earnings report and upbeat AI outlook signal strong demand for its semiconductor solutions, but ongoing competition and broader market conditions remain factors to watch.<\/p>\n

CFRA also maintained a Buy rating on Broadcom Limited, citing the potential for AI semiconductor revenue to enhance Broadcom\u2019s business model over the next three years. <\/p>\n

CFRA also expects continued strong performance in the software segment, particularly following the one-year anniversary of the VMware acquisition.<\/p>\n

The post Broadcom shares surge 10% after Q1-print: buy, sell or hold?<\/a> appeared first on Invezz<\/a><\/p>\n

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Broadcom reported first-quarter earnings on Thursday that exceeded analysts\u2019 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 <\/p>\n","protected":false},"author":1,"featured_media":37594,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-37593","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-investing"},"_links":{"self":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/37593","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/comments?post=37593"}],"version-history":[{"count":0,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/37593\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media\/37594"}],"wp:attachment":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media?parent=37593"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/categories?post=37593"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/tags?post=37593"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}