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Broadcom Inc. (NASDAQ: AVGO) delivered strong financial results in its latest quarter, with revenue of $14.92 billion surpassing the $14.61 billion estimate and adjusted EPS of $1.60 exceeding the $1.49 projection. Total revenue grew 25% year-over-year, driven by a 77% surge in AI semiconductor revenue to $4.1 billion and a 47% increase in infrastructure software revenue to $6.7 billion. The company reported $6.11 billion in cash from operations and $6.01 billion in free cash flow, ending the quarter with $9.31 billion in cash. Broadcom’s net margin of 36.89% and return on equity of 8.01% highlight its financial strength, though its debt-to-equity ratio of 0.95 suggests a higher reliance on leverage. The company also announced a $10 billion share repurchase program, reflecting confidence in its cash flow and diversified product portfolio. Broadcom continues to expand its AI capabilities, adding key customers like ARM, OpenAI, and Apple, and securing new AI ASIC design wins, including Google’s TPU v6 3nm chip. AI semiconductor revenue is projected to grow to $4.4 billion in Q2, supported by investments from hyperscale partners. The company’s VMware Cloud software is enabling industrial innovations like Audi’s Edge Cloud 4 Production, while its focus on custom AI ASICs may help it navigate regulatory challenges faced by competitors. Analysts remain optimistic, with price targets ranging from $210 to $300, as Broadcom’s strategic focus on AI, data center networking, and infrastructure software positions it for continued growth in the evolving tech landscape.
Source content provided by Benzinga.
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About AVGO

Broadcom is the sixth-largest semiconductor company globally and has expanded into various software businesses, with over $30 billion in annual revenue. It sells 17 core semiconductor product lines across wireless, networking, broadband, storage, ... Read more

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