Broadcom Turned In Strong Earnings. But Will They Revive the AI Trade?

Core Insights - The AI trade has recently faced challenges, with Broadcom's quarterly results failing to reignite investor enthusiasm despite surpassing expectations [1][3][7] Company Performance - Broadcom reported a record quarterly revenue of $18.02 billion, reflecting a 28% year-over-year increase, and adjusted earnings per share of $1.95, exceeding analysts' expectations of $1.88 [4] - The company anticipates continued momentum, projecting first-quarter revenue of $19.1 billion, which is above analysts' estimates [5] Dividend and Stock Performance - Broadcom's board approved a 10% increase in its quarterly dividend to $0.65 for fiscal 2026, marking the 15th consecutive year of dividend increases [6] - As of Thursday's close, Broadcom shares have gained approximately 75% of their value in 2025 [6] Market Context - Oracle's disappointing earnings and concerns over its debt have negatively impacted confidence in the tech sector, affecting the AI trade [2][3][7]