Broadcom Reports Strong Q4 Earnings, Shares Surge

Broadcom reported strong Q4 earnings for fiscal 2024, with revenue reaching $14.054 billion, surpassing expectations, driven by high demand for AI products and strategic acquisitions, including VMware. The company's non-GAAP EPS increased to $1.42, showcasing a year-over-year growth. Following the earnings report, Broadcom's shares surged by 14% in after-hours trading, reflecting investor optimism about future AI revenue opportunities estimated between $60 billion to $90 billion by fiscal 2027. This surge positively impacted US equity futures and lifted the entire tech sector, with Broadcom nearing a $1 trillion market cap. CEO Hock Tan highlighted a 65% increase in sales of AI chips for the upcoming quarter, contributing to a significant rise in Broadcom’s stock value this year. Analysts have raised their price targets on Broadcom shares, further indicating market confidence in the company's growth potential in the AI sector.