Broadcom late Thursday beat analyst estimates for its fiscal third quarter and guided above views for sales in the current period. Broadcom stock rose on the news.
The fabless chipmaker and infrastructure software provider earned an adjusted $1.69 a share on sales of $15.95 billion in the quarter ended Aug. 3. Analysts polled by FactSet had expected Broadcom to earn $1.66 a share on sales of $15.83 billion. On a year-over-year basis, Broadcom earnings rose 36% while sales increased 22%.
For the current quarter ending Nov. 2, Broadcom forecast revenue of $17.4 billion, up 24% from the same quarter last year. Wall Street was modeling $17.01 billion in sales in the fiscal fourth quarter.
In after-hours trading on the stock market today, Broadcom stock initially wavered before turning solidly positive. In recent trades, it was up 4% to 318.40. During the regular session Thursday, Broadcom stock rose 1.2% to close at 306.10.
Broadcom stock hit a regular-session all-time high of 317.35 on Aug. 13. That record high was in the 20%-to-25% profit-taking zone of its recent breakout, based on IBD trading principles.
On June 3, Broadcom stock broke out of a 24-week consolidation pattern at a buy point of 251.88, according to IBD MarketSurge charts.
Broadcom Stock Is On Three IBD Lists
Broadcom is the top designer of application-specific integrated circuits, or ASICs, for artificial intelligence in data centers. It currently provides custom AI chips to Alphabet unit Google, Facebook parent Meta Platforms and TikTok parent ByteDance.
In addition to ASICs, Broadcom makes networking and wireless connectivity products and owns virtualization software firm VMware.
"Broadcom achieved record third-quarter revenue on continued strength in custom AI accelerators, networking and VMware," Chief Executive Hock Tan said in a news release. "Q3 AI revenue growth accelerated to 63% year over year to $5.2 billion."
He added, "We expect growth in AI semiconductor revenue to accelerate to $6.2 billion in Q4, delivering 11 consecutive quarters of growth, as our customers continue to strongly invest."
Broadcom stock is on three IBD lists: Leaderboard, Big Cap 20 and Tech Leaders.
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