Q2 Results, Outlook Drive Broadcom Shares UP

(RTTNews) - Shares of Broadcom Inc. (AVGO) were rising more than 13 percent in pre-market on Thursday to $1,694, after reporting better-than-expected second-quarter results boosted by AI demand. The chipmaker also raised its full-year revenue outlook above the Street expectations.

Additionally, the company plans for ten-for-one forward stock split with trading on a split-adjusted basis expected to commence on July 15.

Excluding one-time items, the company posted earnings of $5.394 billion or $10.96 per share for the second quarter, that beat the average estimate of analysts polled by Thomson-Reuters of $10.84 per share.

Net income, however, declined to $2.121 billion or $4.42 per share from $3.481 billion or $8.15 per share in the same quarter a year ago.

Revenue for the quarter increased 43 percent year on year to $12.487 billion, driven by AI demand and contribution from VMware. Revenue from our AI products was $3.1 billion. The consensus estimate for revenue was $12.03 billion.

Looking ahead, the company now expects full-year revenue to be about $51 billion, up from the previous outlook of nearly $50 billion. Analysts are looking for revenue of $50.42 billion for the year.

Broadcom shares had closed at $1,495.51, up 2.36 percent on Wednesday. The stock has traded in the range of $795.09 - $1,505.80 in the last 1 year.