Broadcom Reports $18 Billion Q4 Revenue, Driven by AI Semiconductor Demand
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
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Source: Fool
- Significant Revenue Growth: Broadcom achieved a record $18 billion in Q4 revenue, up 28% year-over-year, with AI semiconductor revenue soaring 74% to $6.5 billion, highlighting strong market demand and the company's leadership in the AI sector.
- Improved Profitability: The company's adjusted earnings per share (EPS) reached $1.95, a 37% increase year-over-year, reflecting Broadcom's profitability and cost control capabilities in a high-demand environment.
- Record Backlog: Broadcom's backlog grew 47% to a record $162 billion, with the CEO stating that the order situation over the past three months has been unprecedented, indicating significant revenue growth expected over the next 18 months.
- Optimistic Market Outlook: Analysts have set an average price target of $456 for Broadcom, representing a potential upside of 42%, with 96% of analysts rating the stock as a buy or strong buy, demonstrating strong market confidence in its future growth.
Analyst Views on AVGO
Wall Street analysts forecast AVGO stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for AVGO is 462.58 USD with a low forecast of 390.00 USD and a high forecast of 525.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
28 Analyst Rating
27 Buy
1 Hold
0 Sell
Strong Buy
Current: 325.490
Low
390.00
Averages
462.58
High
525.00
Current: 325.490
Low
390.00
Averages
462.58
High
525.00
About AVGO
Broadcom Inc. is a global technology firm that designs, develops, and supplies a range of semiconductors, enterprise software and security solutions. The Company operates through two segments: semiconductor solutions and infrastructure software. Its semiconductor solutions segment includes all of its product lines and intellectual property (IP) licensing. It provides a variety of radio frequency semiconductor devices, wireless connectivity solutions, custom touch controllers, and inductive charging solutions for mobile applications. Its infrastructure software segment includes its private and hybrid cloud, application development and delivery, software-defined edge, application networking and security, mainframe, distributed and cybersecurity solutions, and its FC SAN business. It provides a portfolio of software solutions that enable customers to plan, develop, automate, manage and secure applications across mainframe, distributed, mobile and cloud platforms.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
