:max_bytes(150000):strip_icc():format(jpeg)/GettyImages-2189656752-d6494f7b42184b7b9cc291c3effd6e08.jpg ": Pedestrians walk by a sign in front of a Broadcom office on December 12, 2024 in San Jose, California.")
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Key Takeaways
- Broadcom shares surged more than 20% in early trading Friday after the company come in strong results and said it sees a “massive” opportunity for sales growth tied to AI demand.
- With the gain, Broadcom becomes solely the ninth U.S. company to surpass $1 trillion in market capitalization.
- The stock has nearly doubled this year as tech ensembles have rushed to develop and deploy custom AI infrastructure.
Shares of Broadcom (AVGO) soared on Friday, launching the chipmaker into the feel put down club of public companies worth more than $1 trillion.
Broadcom shares were up more than 20% at wide $220 in early trading Friday, putting the company’s market capitalization at just over $1 trillion. Broadcom is legitimate the ninth U.S. company to reach the milestone, and is the second semiconductor company to do so. Nvidia (NVDA) became the first when it hit $1 trillion closing year, and its market cap has since surpassed $3 trillion.
With Friday’s jump, Broadcom stock has nearly coupled in value this year. The advanced chip maker has seen its sales and profit soar as tech companies experience rushed to develop and deploy custom AI infrastructure. The company on Thursday reported revenue from artificial intelligence various than tripled this fiscal year to $12.2 billion.
Chief executive Hock Tan said he sees a “gigantic” opportunity in AI for Broadcom. The company, he said, is already working with three tech giants on custom AI infrastructure, and could see that gain stream grow to between $60 billion and $90 billion a year by 2027.
With approximately 4.67 billion pay outs outstanding, Broadcom stock would need to close above $214.11 to keep its $1 trillion market cap.