Latest news with #AVGO
Yahoo
3 days ago
- Business
- Yahoo
Broadcom Updates VMware Cloud Platform For Streamlined Operations
Broadcom (NASDAQ:AVGO) on Tuesday announced the general availability of VMware Cloud Foundation (VCF) 9.0, a private cloud platform that helps modernize infrastructure and accelerate cloud adoption. The platform simplifies hybrid cloud management, enhances security, and provides a consistent operating model across data centers and public clouds for faster application development and improved cost control. VMware Cloud Foundation 9.0 boasts a completely new architecture that empowers IT admins and application teams to accomplish far more and spend far less, the company said in a press platform delivers a streamlined experience for building, operating, and securing a modern private cloud across on-premises data centers, in hyperscaler and VMware Cloud Service provider clouds, and at the edge. Last December, JP Morgan analyst Harlan Sur projected upside for Broadcom, citing a strong demand profile for AI products, continued cyclical recovery in its diversified semiconductor (ex-AI) end markets, and unlocked VMWare revenue synergy. In the software infrastructure business, Sur noted continued strong momentum in VMware, based on strong software renewals with its large corporate customers. In the longer term, Sur noted over a $30 billion pipeline of AI revenue opportunities per AI customer over the next 4-5 years or over $150 billion in cumulative AI revenue opportunity. Broadcom reported second-quarter revenue of $15 billion, up 20%, beating analyst estimates of $14.99 billion. This was driven by continued momentum in AI semiconductor solutions and VMware. The semiconductor company also reported second-quarter adjusted earnings of $1.58 per share, beating analyst estimates of $1.56. The second-quarter AI revenue grew 46% to over $4.4 billion, driven by robust demand for AI networking. It expects growth in AI semiconductor revenue to accelerate to $5.1 billion in the third quarter, delivering ten consecutive quarters of growth, as its hyperscale partners remain invested in boosting their AI infrastructure. Price Action: AVGO stock is trading higher by 0.23% to $249.94 premarket at last check Wednesday. Read Next:Photo by Ken Wolter via Shutterstock UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? BROADCOM (AVGO): Free Stock Analysis Report This article Broadcom Updates VMware Cloud Platform For Streamlined Operations originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
3 days ago
- Business
- Yahoo
Citi Identifies Broadcom as a Reliable Stock for Strong Upcoming Profits
Broadcom Inc. (NASDAQ:AVGO) is one of Best Dividend Stocks to Buy for Dependable Dividend Growth. The stock was recently added to Citi's updated 'Positive ROE Trend' stock basket, an index of companies expected to see rising return on equity (ROE), largely fueled by improved margins or enhanced efficiency, as measured by total asset turnover, according to strategist Scott Chronert. A technician working at a magnified microscope, developing a new integrated circuit. Citi Research noted that high-quality companies generating strong returns are becoming increasingly difficult to find. Chronert explained in a client note that ROE, which is a measure of profitability calculated by dividing net income by shareholders' equity, is 'increasingly scarce' among large-cap stocks. Still, Citi believes Broadcom Inc. (NASDAQ:AVGO) stands out as a reliable profit generator. The company is projected to achieve an ROE of over 43% by the end of 2026, marking a sharp increase from current levels. The stock has jumped approximately 51% this quarter and is up by over 7% year to date. Broadcom Inc. (NASDAQ:AVGO)'s CEO recently stated that the firm expects its AI-related revenue growth in fiscal 2025 to 'sustain into fiscal 2026,' driven by continued strong demand for its custom AI chips and networking products. Broadcom Inc. (NASDAQ:AVGO)'s dividend policy is also very strong, as the company has been rewarding shareholders with growing dividends for the past 14 years. It pays a quarterly dividend of $0.59 per share for a dividend yield of 0.95%, as of June 17. Broadcom Inc. (NASDAQ:AVGO) is a global tech firm that designs, develops, and delivers a broad portfolio of semiconductor and infrastructure software products. While we acknowledge the potential of AVGO as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and Disclosure. None. Sign in to access your portfolio
Yahoo
3 days ago
- Business
- Yahoo
Broadcom (NASDAQ:AVGO) jumps 3.2% this week, though earnings growth is still tracking behind five-year shareholder returns
We think all investors should try to buy and hold high quality multi-year winners. And we've seen some truly amazing gains over the years. For example, the Broadcom Inc. (NASDAQ:AVGO) share price is up a whopping 704% in the last half decade, a handsome return for long term holders. And this is just one example of the epic gains achieved by some long term investors. On top of that, the share price is up 34% in about a quarter. This could be related to the recent financial results, released recently - you can catch up on the most recent data by reading our company report. Anyone who held for that rewarding ride would probably be keen to talk about it. Since the stock has added US$37b to its market cap in the past week alone, let's see if underlying performance has been driving long-term returns. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price. Over half a decade, Broadcom managed to grow its earnings per share at 37% a year. This EPS growth is lower than the 52% average annual increase in the share price. This suggests that market participants hold the company in higher regard, these days. And that's hardly shocking given the track record of growth. This favorable sentiment is reflected in its (fairly optimistic) P/E ratio of 89.55. The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers). It's probably worth noting that the CEO is paid less than the median at similar sized companies. But while CEO remuneration is always worth checking, the really important question is whether the company can grow earnings going forward. Dive deeper into the earnings by checking this interactive graph of Broadcom's earnings, revenue and cash flow. As well as measuring the share price return, investors should also consider the total shareholder return (TSR). The TSR incorporates the value of any spin-offs or discounted capital raisings, along with any dividends, based on the assumption that the dividends are reinvested. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. We note that for Broadcom the TSR over the last 5 years was 804%, which is better than the share price return mentioned above. And there's no prize for guessing that the dividend payments largely explain the divergence! We're pleased to report that Broadcom shareholders have received a total shareholder return of 40% over one year. And that does include the dividend. However, the TSR over five years, coming in at 55% per year, is even more impressive. It's always interesting to track share price performance over the longer term. But to understand Broadcom better, we need to consider many other factors. For example, we've discovered 2 warning signs for Broadcom that you should be aware of before investing here. Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American exchanges. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
3 days ago
- Business
- Yahoo
HSBC Lifts Broadcom (AVGO) Price Target, Keeps Hold Rating
Broadcom Inc. (NASDAQ:AVGO) is one of the 10 Best American Semiconductor Stocks to Buy Now. On June 6, HSBC analysts raised the price target for Broadcom Inc. (NASDAQ:AVGO) from $225 to $240 and kept a 'Hold' rating. This adjustment came after the $15.8 billion. This represents a 5% growth quarter-over-quarter and is in line with consensus estimates. For Q3 fiscal year 2025, Broadcom Inc. (NASDAQ:AVGO) provided AI revenue guidance of $5.1 billion, representing a 16% increase quarter-over-quarter and above HSBC's estimate of $4.6 billion and the consensus estimate of $4.7 billion. This growth is supported by strong quarter-over-quarter sales of ASIC chips. A technician working at a magnified microscope, developing a new integrated circuit. Broadcom Inc.'s (NASDAQ:AVGO) non-AI semiconductor revenues and infrastructure software revenues are expected to stay stable quarter-over-quarter. The company's gross margin guidance for Q3 fiscal year 2025 stands at 78.1%, which is 135 basis points lower. This decrease is attributed to a higher ASIC mix. Despite that, this figure is still higher than HSBC's estimate of 77.1% and the consensus estimate of 77.6%. Broadcom Inc. (NASDAQ:AVGO) is an American multinational technology company that designs, develops, and supplies a wide range of semiconductor, enterprise software, and security solutions. While we acknowledge the potential of AVGO as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 11 Stocks That Will Bounce Back According To Analysts and 11 Best Stocks Under $15 to Buy According to Hedge Funds. Disclosure: None. Sign in to access your portfolio
Yahoo
6 days ago
- Business
- Yahoo
Is Broadcom Stock Your Ticket to Becoming a Millionaire?
Artificial intelligence (AI) is moving the needle significantly for Broadcom, and that trend could continue thanks to the huge addressable market it is serving. The chipmaker is now expected to clock stronger growth in the coming years thanks to AI. Broadcom's impressive growth and valuation make the stock an attractive buy. 10 stocks we like better than Broadcom › The artificial intelligence (AI) boom has supercharged Broadcom's (NASDAQ: AVGO) growth in recent quarters, with the company now getting a significant chunk of its revenue from selling custom processors and networking chips deployed by major cloud service providers in their data centers. The stock has made a big move in the past couple of months, jumping an impressive 41% as of this writing and going well past $1 trillion in market cap. The good part is that Broadcom is scratching the surface of a massive opportunity in the AI chip market that could help it sustain solid growth rates for a long time to come. Of course, buying just Broadcom and hoping that it will help you become a millionaire isn't a smart thing to do, as any cracks in the company's growth story could send the stock plunging. However, Broadcom looks like an ideal pick for investors aiming to construct a diversified million-dollar portfolio. Let's look at the reasons why. Broadcom released its fiscal 2025 second-quarter results (for the three months ended May 4) on June 5. Its revenue jumped 20% year over year to $15 billion, while adjusted earnings shot up at a stronger pace of 43%. AI played a key role in driving this robust growth. The company's AI revenue jumped 46% year over year to $4.4 billion, which means it's now getting almost 30% of its top line by supplying chips powering this technology. What's worth noting here is that Broadcom is anticipating further acceleration in its AI revenue in the current quarter, projecting $5.1 billion in revenue. That would be an improvement of 60% from the year-ago period. What's more, Broadcom CEO Hock Tan indicated on the latest earnings conference call that the company's AI revenue growth trajectory is sustainable. Tan remarked that the growth rate Broadcom is witnessing so far in fiscal 2025 "will presumably continue." That's not surprising, considering that Broadcom is now seeing stronger demand for its custom AI chips (known as XPUs) for inference purposes. Management says that the three existing customers who are deploying its custom chips in data centers for AI training remain firm in their infrastructure investment plans, despite the economic uncertainty created by the tariff war. At the same time, those three customers "are doubling down on inference in order to monetize their platforms," which is why the company anticipates "an acceleration of XPU demand into the back half of 2026 to meet urgent demand for inference on top of the demand we have indicated from training." A big reason why Broadcom should be able to sustain its impressive AI revenue growth rate is because of the massive addressable opportunity worth $60 billion to $90 billion that it sees for its AI chips by fiscal 2027 based on the three customers it's currently serving. Given that the company has generated $13.6 billion in revenue from sales of its AI chips in the first three quarters of the year, it still has a lot of room to grow in this market. That's especially true considering that another four hyperscalers are in negotiations with Broadcom for manufacturing custom AI processors. As a result, Broadcom may be sitting on a much larger AI-related addressable market, which explains why analysts have raised their growth expectations for the company following its latest results. Broadcom is trading at just under 38 times forward earnings as of this writing following its recent surge. While that may seem expensive at first, we have seen that the company's outstanding earnings growth justifies its rich valuation. Another important thing worth noting is that Broadcom's price/earnings-to-growth ratio (PEG ratio) based on its projected earnings growth for the next five years stands at just 0.66, according to Yahoo! Finance. The PEG ratio is a forward-looking valuation metric calculated by dividing a company's price-to-earnings ratio by its estimated annual earnings growth rate for the next five years. A reading of less than 1 means that the stock in question is undervalued, and Broadcom's multiple is well below that mark. All this makes Broadcom a solid growth stock to buy right now, since it seems built for terrific long-term upside and has the potential to contribute positively toward a million-dollar portfolio. Before you buy stock in Broadcom, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Broadcom wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $655,255!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $888,780!* Now, it's worth noting Stock Advisor's total average return is 999% — a market-crushing outperformance compared to 174% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool recommends Broadcom. The Motley Fool has a disclosure policy. Is Broadcom Stock Your Ticket to Becoming a Millionaire? was originally published by The Motley Fool Se produjo un error al recuperar la información Inicia sesión para acceder a tu portafolio Se produjo un error al recuperar la información Se produjo un error al recuperar la información Se produjo un error al recuperar la información Se produjo un error al recuperar la información
