Broadcom Inc. (NASDAQ:AVGO) shares jumped 12.82% in after-hours trading Thursday after reporting better-than-expected first-quarter results, recovering from a 6.33% drop during regular trading hours amid a broader artificial intelligence chip selloff.
What Happened: The semiconductor giant posted first-quarter revenue of $14.92 billion, surpassing analyst estimates of $14.61 billion, along with adjusted earnings of $1.60 per share, exceeding the expected $1.49 per share, according to Benzinga Pro data.
The Future Fund LLC Managing Partner Gary Black highlighted Broadcom’s strong performance stating, “This should help AI stocks tomorrow.”
CNBC’s Jim Cramer shared a similar sentiment, writing, “Whoever is walking down Broadcom right now I think is making a mistake.”
The company expects continued AI momentum, projecting second-quarter AI semiconductor revenue of $4.4 billion as “hyperscale partners continue to invest in AI XPUs and connectivity solutions for AI data centers.” Overall second-quarter revenue guidance stands at approximately $14.9 billion, above analyst estimates of $14.76 billion.
See Also: Jeff Bezos Brings Amazon's Hard-Charging Culture, 50-Hour Workweek To Blue Origin: CEO Says Growth Led To ‘More Bureaucracy…Less Focus'
Why It Matters: The selloff in AI chip stocks on Thursday included Nvidia Corp. (NASDAQ:NVDA), Advanced Micro Devices, Inc. (NASDAQ:AMD), and Taiwan Semiconductor Manufacturing Co. (NYSE:TSM), which fell in sympathy with Marvell Technology Inc.‘s (NASDAQ:MRVL) weaker guidance.
Broadcom has a consensus price target of $537.08 based on 26 analyst ratings, with recent targets from Morgan Stanley, Barclays, and Mizuho averaging $255.33.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
