AVGO: Why Broadcom Stock Jumped 110%?

Core Insights - Broadcom's stock surged over 100%, driven by a nearly 10% revenue increase and a remarkable 71% rise in net margin, indicating enhanced efficiency and profitability [1][5][4] - The company's advancements in artificial intelligence, particularly in selling application-specific integrated circuits (ASICs), have attracted significant investor interest [3][4] Financial Performance - Broadcom reported Q3 fiscal year 2025 earnings with an EPS of $1.69, exceeding the expected $1.66, and revenue reached a record $16 billion, surpassing the anticipated $15.82 billion [7] - AI semiconductor revenue grew by 63% year-over-year to $5.2 billion in Q3 2025, marking ten consecutive quarters of growth, with projections for Q4 AI revenue to escalate to $6.2 billion, indicating sustained strong demand [8][7] Strategic Developments - A landmark multi-year strategic partnership with OpenAI was announced, focusing on co-developing and deploying 10 gigawatts of custom AI accelerator racks, expected to enhance Broadcom's position in AI infrastructure [12] - Analysts maintain a consensus rating of 'Buy' or 'Strong Buy' for Broadcom, with price targets ranging from $352.96 to $450.00, reflecting confidence in the company's growth trajectory, especially in AI [12]