Broadcom rose over 10% in early trading on Friday.
The AI chipmaker beat earnings estimates and offered upbeat forward guidance.
The results are a badly needed glimmer of hope for the downtrodden AI trade.
The move: Broadcom stock jumped 10% to $198 per share on Friday morning. The rise claws back some of the year’s losses for the stock, which was down about 22% year-to-date through Thursday’s close.
The chart:
Why: The chipmaker is rising after it beat earnings estimates and gave an upbeat outlook.
Broadcom expects revenue of about $14.9 billion, outpacing consensus estimates of $14.76 billion.
The firm reported first-quarter revenue that also beat projections. At $14.92 billion, sales were 25% from a year ago. Earnings per share jumped to $1.14 from $0.28 in the same timeframe.
Importantly for investors looking for signs the AI trade is still alive, revenue in Broadcom’s AI segment rose 77% in the quarter.
What it means: This chipmaker’s performance is a much-needed silver lining for AI hardware makers, as enthusiasm for the technology has waned in 2025.
That was on display on Thursday when Marvell Technology shares tanked almost 20% after an earnings outlook that failed to excite Wall Street. While the semiconductor rival offered a slight beat, it didn’t meet the market’s most bullish hopes.
Heading into the earnings results, Broadcom was expected to be one of two potential positive catalysts for AI this week, the other being Marvell.
Investors have been watching the hardware trade with increasing skepticism, amid growing doubt in demand for AI infrastructure. Similar to Marvell’s results, Nvidia’s recent earnings strength wasn’t enough to stop shares from dropping sharply.
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