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Broadcom surges on Q2 earnings beat, 10-for-1 stock split

Broadcom (AVGO) shares soar in Thursday's pre-market trading after posting stellar fiscal second-quarter earnings results — revenue of $12.49 billion ($12.06 billion expected) and adjusted earnings of $10.96 per share ($10.80 per share expected).

The Morning Brief's Seana Smith and Brad Smith break down the latest figures on Broadcom's AI-related business segments and the company's 10-for-1 stock split.

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

This post was written by Luke Carberry Mogan.

Video transcript

Well.

Broadcom shares surging after posting a beat in the second quarter, also announcing a 10 for one stock split, which is set to take effect July 15.

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Now the company is saying it's a I products, contributing to over $3 billion in sales during the quarter.

We're seeing the excitement play out here in real time and that pre market action you've got the stock up just about 14%.

And right when you take a look at these numbers very impressive growth here from Broadcom.

A number of analysts.

We will be speaking with one, later on in the show, raising their price targets.

As a result of this.

Some of that momentum that they're seeing within their A. I business specifically about the A I revenue was 3.1 billion, significantly exceeding many of those forecasts.

There are from the stream Yeah, some numbers on this quarter.

Q two revenue of $3.8 billion that grew 44% year over year, 53% of semiconductor Rev is what that represented.

And they said that this was driven by strong demand from hyper scalar for both a I networking and custom accelerators here, So, uh, also interesting to note within this.

And they talked about this on the earnings call that a I data centre clusters continue to deploy here.

And the revenue mix has been shifting towards an increasing proportion of networking here.

And so doubling the number of switches that they sold year over year, particularly by what they call Tomahawk five and Jericho three.

We'll dive into that further.

Perhaps we need a little like terminology breakdown for some of these companies as we hear more about the chips and the hyper scalar and the switches yada, yada, yada.

But successful, um, deployment of those and some of their partners.

Dell Juniper, Super Micro.

They're citing within this report.

Talked about them well on the call too.

All right.

Chairs up just about 14%.