Dear Broadcom (AVGO) Stock Fans, Mark Your Calendars for July 11

  • Semiconductor specialist Broadcom (AVGO) is seeing shares pop higher on Thursday.
  • A strong earnings report is helping invigorate sentiment for Broadcom amid the AI gold rush.
  • An upcoming share split should make AVGO stock more accessible to retail investors.
AVGO stock - Dear Broadcom (AVGO) Stock Fans, Mark Your Calendars for July 11

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Semiconductor and infrastructure software specialist Broadcom (NASDAQ:AVGO) is seeing shares soar on Thursday. Yesterday, management released its earnings report for the quarter ended May 5 to much fanfare, beating on both the top and bottom lines. Further, an upcoming share split should make AVGO stock more accessible to investors. The timing couldn’t be better amid the artificial intelligence (AI) gold rush.

According to CNBC, Broadcom posted adjusted EPS of $10.96 per share, which easily beat the consensus target calling for $10.84. On the top line, revenue clocked in at $12.49 billion, exceeding the consensus view of $12.03 billion. Further, for fiscal 2024, Broadcom anticipates that it will generate approximately $51 billion in sales. If it does so, it would slightly beat the consensus estimate of $50.42 billion.

As the outlet points out, Broadcom is “one of the chipmakers benefiting from the artificial intelligence boom because its devices can run the sorts of AI applications that have enamored the tech industry.” Notably, $3.1 billion of the firm’s top line during the quarter was attributable to sales from AI products.

That comes out to roughly 25% of sales, which has investors excited about the new big development: An upcoming split for AVGO stock.

Retail Demand May Soar for AVGO Stock

In addition to the earnings report, Broadcom also announced yesterday that its Board of Directors declared a 10-for-1 forward split of AVGO stock. Primarily, the reason for the split centered on the enormous expansion of the company’s share price. By splitting the equity units, the action “will make ownership of Broadcom common stock more accessible to investors and employees.”

Officially, the split will occur on July 12. However, for retail investors, the key date to mark on your calendar is July 11. According to Broadcom’s press release, each AVGO shareholder of record as of the July 11 close of the Nasdaq “will receive an additional nine shares of Broadcom common stock for every one share of Broadcom common stock held.”

CEO Hock Tan likely fueled appetite for AVGO stock. Tan stated during the earnings call:

“Talking of AI accelerators, you may know our hyperscale customers are accelerating their investments to scale up the performance of these clusters […] And to that end, we have just been awarded the next-generation custom AI accelerators for these hyperscale customers of ours.”

The last time Broadcom split AVGO stock was when Avago acquired the firm in 2016. With so much enthusiasm for AI recently, this latest split could attract more eyeballs on the dividend-paying tech firm.

On the date of publication, Josh Enomoto did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. Tweet him at @EnomotoMedia.


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