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Broadcom stock soars on 10-for-1 stock split plans

Shares of Broadcom (AVGO) are soaring on Thursday after the semiconductor giant unveiled plans for a 10-for-1 stock split. This strategic move follows the company's second-quarter earnings beat, fueled by robust demand for its artificial intelligence offerings.

For more expert insight and the latest market action, click here to watch this full episode of Catalysts.

This post was written by Angel Smith

Video transcript

Turning now to chip stock shares of Broadcom surging today after announcing plans for a 10 for one to stocks, but also reporting another quarter, a strong demand driven by its A I products, Yahoo Finance, we spoke to Stacy Raskin Bernstein, managing director and senior analyst about Broadcom's business and that blowout quarter that the company just had.

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Here's what he had to say.

They have this what I I always refer to as the second best A I story in the space.

I mean, NVIDIA is clearly number one.

Broad C is, is actually number two.

So he thinks broad comes the second best uh A I play, which is really what stuck out to us here, Matty from that conversation that we had uh just the last hour.

But I think that rate of growth, right?

And this is something that Stacy asked broad comes to management on uh the earnings call last night is something that he discussed here with us on Yahoo Finance today.

And, and just given that growth rate that we have seen that the demand he still views.

And I think this is many on the street, I view this as well.

Pretty much consensus that management's guide here even for the coming years proves to be a bit conservative.

Given the rapid growth rate that we have seen in demand for Broadcom's A I products specifically.

So I think given that we are seeing a number of analysts come out extremely bullish on this name here.

And more and more you're starting to hear even from our conversations with strategists analysts over the last several weeks, you're starting to hear Broadcom's name brought up more and more as one of those top A I plays and well positioned.

Given the excitement surrounding the technology.

It was a great interview that you have with Stacey.

I loved listening to it and it was interesting because it also points to this idea that in the their customers are also their competitors.

But the CEO of Broadcom throwing cold water on that idea kind of saying we're truly not a competitor.

We don't want to be whether or not that remains to be true for a lot of videos customers is a big question I have, I know when I've been speaking with Aws and their chips lab creators and I was on the ground in a with them.

They talked a lot about this idea of, no, we don't want to be a videos competitor, of course not, but also some day, of course, he would want to be right.

So it's interesting to see and of course, as, as Stacy mentioned, the fact that he sees this as the second biggest A I play regardless.

Not a bad comparison, not bad comparison.

And you're also looking at Broadcom shares, they have been up just around 15% year earlier in trading on track for one of its best days that it's had or the best day that it's had going back to 2020.

So again, we'll see if those gains hold because they were just off the highs of the session year with shares up just about 12%.