Today's AI Stock Winner Is Up By 14%
Date
12/13/2024 10:13:02 AM
(MENAFN- Baystreet)
After markets closed last night, Broadcom (AVGO) posted fourth-quarter results. This sent the stock up by 14% in after-hours trade.
In Q4, the firm's revenue increased by 51.2% year over year to $14.06 billion. Non-GAAP EPS topped $1.42. For FY 2025, Broadcom guided revenue growth of 22% to $14.6 billion. Similarly, Q1 2025 revenue growth is 22% to $14.6 billion.
Broadcom won the shareholder's confidence by hiking its dividend by 11.3% to $0.59 a share. Though the forward yield of 1.31% will not attract income investors, its 61.85% YTD return will appeal to growth investors.
When AVGO stock opens at all-time highs, investors who do not hold a position may have to pay the premium. The company's market capitalization before the rally was $843.79 billion. Yet companies like Nvidia (NVDA), Alphabet (GOOG), and Tesla (TSLA) trade at a higher valuation.
On its conference call, Broadcom said that sales related to artificial intelligence increased for the back half of this year. This was faster than the first half. It expects this pattern will continue in the first half of the next fiscal year. When the 3-nanometer XPU AI accelerator ramps up, sales will increase in the back half of 2025.
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