Analysts see long-term strength for Broadcom Inc AVGO after the company reported quarterly financial results.The Broadcom Analysts:Bank of America analyst Vivek Arya reiterated a Buy rating with a $215 price target.KeyBanc analyst John Vinh maintained an Overweight rating with a $210 price target.Cantor Fitzgerald analyst C.J. Muse reiterated an Overweight rating with a $200 price target.Benchmark analyst Cody Acree reiterated an Overweight rating with a $200 price target.Goldman Sachs analyst Toshiya Hari ...

Broadcom (AVGO) reported third-quarter fiscal 2024 non-GAAP earnings of $1.24 per share, beating the Zacks Consensus Estimate by 3.33% and increasing 18.1% year over year.Net revenues surged 47.3% year over year to $13.07 billion, surpassing the Zacks Consensus Estimate by 1.31%. The top-line growth was driven by strong demand for AI semiconductor solutions and VMware.However, AVGO shares were down more than 7% in pre-market trading following a disappointing fourth-quarter fiscal 2024 guidance. The stock ha ...

Semiconductor stock Broadcom Inc (NASDAQ:AVGO) is down 9.1% to trade at $138.97, after the company reported worse-than-expected revenue guidance for its fiscal fourth quarter, overshadowing top- and bottom-line beats for the third quarter.In response to the results, Morgan Stanley raised its price target to $180 from $176, while Truist Securities adjusted lower to $204 from $204.50. Coming into today, the 12-month average target price of $194.64 was a 35.7% premium to last night's close, while 29 covering b ...

Is Broadcom a true competitor to Nvidia?In today's video, I discuss Nvidia (NVDA 0.94%), Broadcom (AVGO -0.84%), and recent artificial intelligence (AI) news impacting the semiconductor market. Check out the short video to learn more, consider subscribing, and click the special offer link below.*Stock prices used were the after-market prices of Sept. 5, 2024. The video was published on Sept. 5, 2024. ...

AI is just getting started, and these companies are setting themselves up to benefit.Artificial intelligence (AI) has quickly become an investing theme for many people as they've experienced first-hand the benefits of using AI. But with an increasing number of tech companies betting on this new frontier, it can be hard to sift through the AI hype and find the companies that are actually worth investing in.Here are three AI stocks that are making a significant impact in the space and why they're worth buying ...

After holding fairly steady with only a modest 0.84% decline during September 5 trading, Broadcom (NASDAQ: AVGO) stock tumbled 9.38% from its close at $152.82 to its latest recorded price of $138.49.AVGO stock 1-day and after-hours price chart. Source: GoogleThe fall was triggered by the publishing of the semiconductor and infrastructure provider’s latest earnings report – published after the closing bell on September 5 –  which, despite beating revenue and earnings-per-share (EPS) forecasts, disappointed i ...

Key TakeawaysBroadcom shares tumbled nearly 7% in extended trading on Thursday after the chipmaker posted fiscal third-quarter results that topped expectations but issued light revenue guidance for the current quarter.The stock sits positioned to break down from a symmetrical triangle pattern on Friday following the company's weaker-than-expected sales outlook, potentially starting a new trend lower.Investors should monitor important lower price levels on Broadcom's chart at $141, $120, $104, and $91. Broad ...

Financial Data and Key Metrics - Consolidated net revenue for Q3 2024 was $13.1 billion, up 47% YoY, with operating profit up 44% YoY [5] - Q3 infrastructure software segment revenue was $5.8 billion, up 200% YoY, driven by $3.8 billion from VMware [7] - Q3 semiconductor revenue was $7.3 billion, up 5% YoY, with gross margins at 68%, down 270 basis points YoY [14] - Q3 free cash flow was $4.8 billion, representing 37% of revenue, and adjusted EBITDA was $8.2 billion or 63% of revenue [15] - Q4 guidance includes consolidated revenue of $14 billion, up 51% YoY, with adjusted EBITDA expected to be 64% of revenue [12][17] Business Line Performance - Networking revenue in Q3 was $4 billion, up 43% YoY, driven by strong demand for AI networking and custom AI accelerators [8] - Wireless revenue in Q3 was $1.7 billion, up 1% YoY, with expectations of over 20% sequential growth in Q4 [10] - Broadband revenue declined 49% YoY to $557 million in Q3, with continued weakness expected in Q4 [11] - Industrial resales in Q3 were $164 million, down 31% YoY, with a sequential recovery expected in Q4 [11] Market Performance - AI revenue in Q3 was $3.1 billion, with expectations of $3.5 billion in Q4, representing 10% sequential growth [9][12] - Non-AI networking revenue was up 17% sequentially in Q3, though down 41% YoY, with a moderated decline of 30% expected in Q4 [9] - Server storage connectivity revenue in Q3 was $861 million, up 5% sequentially but down 25% YoY, with mid to high-single-digit sequential growth expected in Q4 [10] Strategic Direction and Industry Competition - The company is focused on integrating VMware, with VMware Cloud Foundation (VCF) bookings reaching $2.5 billion in Q3, up 32% sequentially [7] - AI demand remains strong, with AI revenue expected to reach $12 billion for fiscal 2024, up from prior guidance of over $11 billion [12] - The company is reducing VMware spending, targeting adjusted EBITDA of $8.5 billion within three years of the acquisition [8] - The semiconductor segment is seeing a recovery in non-AI markets, with AI demand driving growth in custom accelerators and networking [9][12] Management Commentary on Business Environment and Outlook - The company expects strong growth in AI revenue in fiscal 2025, driven by hyperscalers and digital natives [21][36] - Non-AI semiconductor markets have bottomed out, with recovery expected in Q4 and into 2025 [31][32] - Broadband and industrial markets remain weak, but recovery is anticipated in 2025 [11][32] Other Important Information - The company ended Q3 with $10 billion in cash and $72.3 billion in gross principal debt, with plans to repay $1.9 billion of fixed-rate senior notes in Q4 [16] - Q3 cash dividends were $2.5 billion, with Q4 dividends expected to be $0.53 per share [17] - The company is focused on reducing floating-rate debt and managing inventory levels across the ecosystem [15][16] Q&A Session Summary Question: AI Revenue Mix and Growth Outlook - AI revenue in Q3 was $3.1 billion, with a mix of two-thirds compute and one-third networking, expected to continue in Q4 [20][21] - The company expects strong AI revenue growth in fiscal 2025, driven by hyperscalers and digital natives [21][36] Question: Shift in AI Revenue from Cloud to Enterprise - The company does not focus on the enterprise AI market, with products primarily targeting hyperscalers and cloud providers [23][24] Question: VMware Business Performance - VMware bookings are accelerating, with a focus on converting customers to subscription licenses and VCF, expected to continue into 2025 [26][27] Question: Non-AI Semiconductor Recovery - Non-AI semiconductor markets have bottomed out, with recovery expected in Q4 and into 2025, driven by enterprise data center spending [29][31] Question: AI Revenue Growth and Customer Base - AI revenue in Q3 was in line with expectations, with growth in Q4 driven by hyperscalers and digital natives [35][36] Question: VMware Profitability - VMware's operating margin is improving, with Q3 revenue of $3.8 billion and operating expenses of $1.3 billion, expected to continue improving in Q4 [49][50] Question: Custom AI Revenue and Customer Contribution - The company has three meaningful customers for custom AI accelerators, with production volumes expected to grow in 2025 [55][56] Question: Storage Business and Seagate Partnership - The company's partnership with Seagate focuses on advancing hard disk drive technology, with a goal of reaching 50 terabytes within five years [58][60] Question: Participation in NVIDIA's Blackwell Product Cycle - The company is not directly involved in NVIDIA's Blackwell roadmap but may provide optical components and DSPs for interconnects [62][63] Question: M&A Strategy - The company is focused on integrating VMware and does not anticipate further M&A in the near term [65][66] Question: AI Demand and Supply Constraints - The company is seeing upside demand for AI accelerators and networking, with the ability to meet supply requirements [68][69] Question: Trend Towards Custom ASICs in AI - The company believes hyperscalers will increasingly adopt custom ASICs for AI workloads, while enterprises will continue to rely on merchant silicon [72][76]

Today’s normal stock market trading session was mixed today, with a slight gain on the Nasdaq of +0.25% offset by a -0.30% drop in the S&P 500, -0.54% on the Dow and -0.61% on the small-cap Russell 2000. Things had looked more promising during the morning hours, but couldn’t hold onto gains across the board.Services Sector Results for August: Better than ExpectedBoth monthly reports from the overall Services sector — ISM Services and S&P Services PMI — came in ahead of expectations this morning, and both ab ...

Broadcom Inc. (AVGO) came out with quarterly earnings of $1.24 per share, beating the Zacks Consensus Estimate of $1.20 per share. This compares to earnings of $1.05 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 3.33%. A quarter ago, it was expected that this chipmaker would post earnings of $1.08 per share when it actually produced earnings of $1.10, delivering a surprise of 1.85%.Over the last four quarters, the company ha ...