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Broadcom shares are surging in premarket trading Friday after the chipmaker posted quarterly results and an outlook that topped analysts’ expectations on the back of robust demand for its artificial intelligence semiconductors.
The company said its revenue from AI chip sales jumped 77% in the quarter, with projections showing continued improvement in that area.
Citigroup stuck with its buy rating on the stock “given upside from AI” and $220 price target.
Broadcom (AVGO) shares are surging more than 8% in premarket trading Friday after the chipmaker posted quarterly results and an outlook that topped analysts’ expectations on the back of robust demand for its artificial intelligence (AI) semiconductors.
Broadcom reported adjusted earnings per share (EPS) of $1.60 on revenue that grew 25% year-over-year to $14.92 billion, both above Visible Alpha expectations. Its current-quarter projected revenue of $14.9 billion came in slightly ahead of the consensus.
The company said its AI revenue jumped 77% in the quarter, with projections showing continued improvement in that area.
Citigroup stuck with its buy rating on the stock “given upside from AI” and $220 price target, noting that the chipmaker’s AI strength would offset any potential “downside” from sanctions on TikTok parent ByteDance and any loss of the business of supplying radio-frequency (RF) chips to Apple (AAPL) . Both China’s Bytedance and the Apple RF chip business are projected at around 2% of Broadcom’s fiscal 2025 sales, Citi said.
U.S. President Donald Trump has an April 5 deadline for TikTok to be sold or banned, although The Hill cited him as saying Thursday that it could be extended if a deal isn’t reached.
Broadcom shares are up about 33% in the past 12 months through Thursday, although they struggled at the start of the year given mounting concerns over tech giants’ big AI spending and uncertainty about the potential impact of the Trump administration’s policies on tariffs and AI chip export curbs.
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