Broadcom Stock Is Trading Lower Friday: What's Going On?

Broadcom, Inc. AVGO stock is trading lower Friday. The company reported second-quarter financial results on Thursday after the market closed.

The Details: Broadcom posted adjusted earnings per share of $1.58, beating the consensus estimate of $1.56 per share. In addition, the company reported sales of $15 billion, beating the consensus estimate of $14.99 billion, and representing a 20% year-over-year increase.

“Broadcom achieved record second quarter revenue on continued momentum in AI semiconductor solutions and VMware. Q2 AI revenue grew 46% year-over-year to over $4.4 billion driven by robust demand for AI networking,” said Hock Tan, President and CEO of Broadcom Inc.

Furthermore, Broadcom reported cash from operations of $6.55 billion and $6.41 billion in free cash flow.

it also reported that it repurchased and eliminated 25.3 million shares for $4.21 billion.

Outlook: Broadcom sees second-quarter sales of $15.80 billion, versus the consensus estimate of $15.79 billion.

Analyst Changes: Following the earnings report, multiple analysts issued price target adjustments

• Benchmark analyst Cody Acree maintained a Buy rating on Broadcom and raised the price target from $255 to $315.
• Rosenblatt analyst Kevin Cassidy maintained a Buy rating on Broadcom and raised the price target from $223 to $340.

Related Link: Taiwan Semiconductor Powers Alphawave’s 2nm Chip Breakthrough For Faster AI And HPC Connectivity

AVGO Price Action: At the time of writing, Broadcom stock is trading 2.83% lower at $252.66, according to data from Benzinga Pro.

Image: via Shutterstock