Broadcom Inc. Reaches Record High

Shares of network equipment maker Broadcom Inc (NASDAQ:AVGO) hit a record high in aftermarket trade on Thursday after forecasting stronger-than-expected revenue for the current quarter.

Broadcom’s gains were driven by positive comments from CEO Hock Tan during the earnings call, highlighting increased tailwinds from the artificial intelligence industry.

The stock surged more than 15%, reaching an indicated record high of over $207. This trend extended to other chipmakers, with NVIDIA Corporation (NASDAQ:NVDA) and AMD (NASDAQ:AMD) rising 1.1% and 0.7%, respectively.

Broadcom reported stronger-than-expected profit for the quarter ending on November 30, forecasting revenue of $14.6 billion for the current quarter, slightly above estimates of $14.57 billion. The firm also increased its quarterly dividend by 11% to 59 cents.

A significant portion of Broadcom’s gains came after CEO Tan indicated rising revenues from the AI industry, anticipating a $15 billion to $20 billion market for its AI accelerators by 2025.

Tan also expressed openness to further deal-making activity, a strategy integral to Broadcom’s growth over the past decade. Recently, the company made headlines with its $68 billion acquisition of cloud firm VMware (NYSE:VMW).

Additionally, gains in Broadcom followed reports from The Information that the company is collaborating with Apple Inc (NASDAQ:AAPL) to develop a server chip tailored for artificial intelligence. Apple, which is Broadcom’s largest customer for wireless chips in mobile phones, is reportedly planning to create its own in-house chips.