Shares of semiconductor giant Broadcom (AVGO -2.12%) have more than doubled in the past year, but they fell nearly 7% in early March after the company released results for fiscal 2024's first quarter (ended Feb. 4) -- and that was despite better-than-expected numbers.Broadcom's revenue and earnings exceeded expectations, while its fiscal 2024 revenue guidance of $50 billion was slightly ahead of the $49.8 billion consensus estimate. Investors, however, were probably expecting more from Broadcom in light of ...

At first glance, Broadcom (AVGO -2.12%) does not look like a "Magnificent Seven" stock. The Magnificent Seven name, coined by Bank of America analyst Michael Hartnett in 2023, largely featured household names such as Apple and Amazon. Broadcom, by contrast, is a B2B company, and many investors know little about it.Nonetheless, its $590 billion market cap now exceeds that of Magnificent Seven stock Tesla (TSLA 0.66%). Given the continual growth in its revenue, dividend, and stock price, investors should ask ...

Broadcom (AVGO) recently announced the launch of Bailly, the world’s premier 51.2 terabits per second (Tbps) co-packaged optics (CPO) Ethernet switch. This groundbreaking product integrates cutting-edge silicon photonics technology with Broadcom's renowned StrataXGS Tomahawk 5 switch chip, setting a new standard for efficiency and performance in AI infrastructure.Bailly represents a significant leap forward in optical interconnect technology, addressing the escalating demands of both front-end and back-end ...

Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool recommends Broadcom. The Motley Fool has a disclosure policy.Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool. ...

The market is overlooking many stocks that could benefit from the proliferation of AI over the longer term. There are companies using AI to solve real-world problems, and others providing the raw materials that enable the AI boom to progress. We’re even seeing the undervaluing of companies whose chips enable AI to be produced and work its magic, or that build and run the data centers that host the processors that AI utilizes. With that said, here are three undervalued AI stocks for long-term investors to co ...

Broadcom (AVGO) recently announced significant advancements in its optical interconnect solutions tailored for AI and machine learning (ML) applications. This development marks a crucial stride forward in the integration of cutting-edge optics technologies into the rapidly evolving landscape of AI infrastructure.The latest achievements unveiled by Broadcom include the production release of the 200-Gbps per lane (200G/lane) electro-absorption modulated laser (EML) designed to complement next-generation GPUs. ...

PALO ALTO, Calif., March 14, 2024 (GLOBE NEWSWIRE) -- Broadcom Inc. (NASDAQ:AVGO) announced today that it has delivered Bailly, the industry's first 51.2 terabits per sec (Tbps) co-packaged optics (CPO) Ethernet switch, to its customers. The product integrates eight silicon photonics based 6.4-Tbps optical engines with Broadcom's best-in-class StrataXGS® Tomahawk®5 switch chip. Bailly enables the optical interconnect to operate at 70% lower power consumption and delivers an 8x improvement in silicon area ef ...

Some companies create so much value over the long term that their stock price soars into the hundreds or even thousands of dollars, which makes it difficult for everyday investors to buy one full share. Those companies will often execute a stock split, which works by increasing the number of shares in circulation and reducing the price per share by a proportional amount.For example, a 3-for-1 stock split would increase a company's shares in circulation threefold, while reducing its price per share by two-th ...

Semiconductor stocks are attracting attention this year as artificial intelligence (AI) adoption leads to a mushrooming growth in the demand for chips. The sector’s success will have significant implications on the U.S. economy due to the ubiquitous demand for microprocessors.Furthermore, the sector is anticipated to grow in 2024 as supply chain problems are resolved following a pandemic that severely hindered the production of new chips. Legislation such as the CHIPS Act will also certainly help improve re ...

Revenue and Segment Performance - Net revenue for the fiscal quarter ended February 4, 2024 was $11,961 million, a 34% increase compared to $8,915 million in the prior year fiscal quarter[100] - Semiconductor solutions segment revenue increased 4% to $7,390 million, driven by strong demand for networking products[100] - Infrastructure software segment revenue surged 153% to $4,571 million, primarily due to contributions from the VMware acquisition[100] - Operating income from the infrastructure software segment increased by 108% to $2,715 million, driven by contributions from VMware[108] - Direct sales to WT Microelectronics accounted for 27% of net revenue in the fiscal quarter ended February 4, 2024, up from 22% in the prior year fiscal quarter[97] Gross Margin and Expenses - Gross margin increased by $1,371 million to $7,375 million, but gross margin percentage decreased from 67% to 62% due to higher amortization of acquisition-related intangible assets[101] - Research and development expense increased 93% to $2,308 million, driven by higher stock-based compensation and headcount from the VMware acquisition[102] - Selling, general and administrative expense increased 352% to $1,572 million, primarily due to higher stock-based compensation and acquisition-related costs[103] - Amortization of acquisition-related intangible assets increased 128% to $792 million, mainly from customer-related intangible assets from the VMware acquisition[104] - Restructuring and other charges were $620 million, primarily due to employee termination costs associated with the VMware acquisition[105] - Unallocated expenses increased by 258% to $4,748 million, primarily due to higher amortization of acquisition-related intangible assets and stock-based compensation from the VMware Merger[108] VMware Acquisition and Integration - The company completed the acquisition of VMware for approximately $30.8 billion in cash and 54.4 million shares of Broadcom common stock valued at $53.4 billion[90] - The company is currently integrating VMware operations, control processes, and information systems into its systems and control environment[124] - The company signed a definitive agreement to sell VMware's end-user computing business for approximately $3.8 billion, expected to close in 2024[111] Stock-Based Compensation - Total stock-based compensation expense increased to $1,572 million for the fiscal quarter ended February 4, 2024, compared to $391 million in the prior year, primarily due to equity awards from the VMware Merger and higher grant-date fair values[106] - Unrecognized compensation cost related to unvested stock-based awards as of February 4, 2024, totals $12,132 million, with a remaining weighted-average service period of 3.3 years[107] Interest and Debt - Interest expense rose to $926 million, up from $406 million, due to debt incurred for the VMware Merger[109] - The company had $48.1 billion in principal amount of fixed rate senior notes outstanding as of February 4, 2024, with an estimated aggregate fair value of $43.2 billion[122] - A hypothetical 50 basis point change in market interest rates would alter the fair value of the fixed rate senior notes by approximately $1.6 billion as of February 4, 2024[122] - The company had $30.4 billion of outstanding term loans subject to floating interest rates as of February 4, 2024[122] - A hypothetical 1% change in the interest rate would impact the interest expense on the 2023 Term Loans by approximately $307 million over the next 12 months[122] Cash Flow and Financial Position - The company's cash and cash equivalents totaled $11,864 million as of February 4, 2024, with a $7.5 billion unsecured revolving credit facility available[111] - Net cash provided by operating activities increased to $4,815 million, primarily due to contributions from VMware[118] - Cash used in investing activities surged to $25,477 million, mainly due to $25,416 million paid for the VMware Merger[119] - Net cash provided by financing activities was $18,337 million, driven by $30,010 million in net proceeds from the 2023 Term Loans[120] Internal Controls and Reporting - The company's disclosure controls and procedures were deemed effective as of February 4, 2024, at the reasonable assurance level[124] - No material changes in internal control over financial reporting were identified during the period covered by the report[124]