Chip manufacturer Broadcom's market value surpasses USD1 trillion for first time
Date
12/15/2024 7:39:34 AM
(MENAFN) Broadcom's market value surpassed USD1 trillion for the first time on Friday, marking a significant milestone for the US-based chip manufacturer. After seeing a remarkable 24.4 percent increase in its share prices, the company’s market capitalization reached USD1.05 trillion. At the close of the markets for the week, Broadcom's stock was priced at USD224.8 per share, signaling strong investor confidence.
This surge in stock prices followed the release of the company’s fourth-quarter financial results, which exceeded analysts' expectations. Broadcom reported a 51 percent year-on-year revenue increase, reaching USD14.05 billion for the quarter, according to preliminary figures. This robust growth has been attributed to strong performance across its product lines, particularly in the booming artificial intelligence (AI) sector.
Broadcom's net profit also saw an impressive 23 percent increase, climbing to USD4.32 billion. The company's strong financial performance was largely driven by its expanding AI business, which saw a dramatic 220 percent year-over-year increase in AI-related revenues, amounting to USD12.2 billion in 2024. This surge reflects the growing demand for semiconductor components needed for AI applications.
The exceptional growth in both revenue and profit highlights Broadcom's strategic positioning in the tech industry, particularly as AI technologies continue to drive innovation and market demand. As the company continues to capitalize on this trend, its future growth prospects look increasingly promising.
MENAFN15122024000045015839ID1108994720
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.