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Broadcom Inc. (Nasdaq: AVGO) stock price soared to new heights, reaching $1,707.48 as of 10:10 AM EDT today, marking an impressive increase of $209.43 (+14.00%) from the previous close. The semiconductor firm upped its revenue forecast from AI chips for 2024 and its overall full-year revenue to $51 billion.

The stock’s day range spans from $1,682.00 to $1,711.00, with a 52-week range of $1,040.00 to $1,711.00. Broadcom’s market capitalization stands at $791.28B (intraday), with a beta (5Y Monthly) of 1.03, a PE Ratio (TTM) of 64.43, and an EPS (TTM) of 23.18.

Broadcom (AVGO) Soars on Raised 2024 Guidance, 10-for-1 Stock Split Announced

The semiconductor giant announced a 10-for-1 stock split, effective July 15, making shares more accessible to retail investors.

Broadcom also raised its revenue forecast from AI chips to $11 billion for 2024, up from the previous estimate of $10 billion.

The company’s stock has rallied over 30% this year, nearly doubling in 2023. In the second quarter, Broadcom reported revenue of $3.1 billion from AI products, while revenue from the semiconductor solutions segment rose by 6% to $7.20 billion. The company also raised its full-year revenue forecast to $51 billion.

As of 10:10 AM EDT, Broadcom’s stock price stood at $1,707.48 (+14.17%), with a market open and a previous close of $1,498.05. The stock’s volume reached 5,167,456, compared to an average volume of 2,345,678. Analysts have set a 1-year target estimate of $1,720.00 for Broadcom’s stock.

Surging Demand for AI Chips Drives Broadcom’s Growth

Broadcom’s stock price surge can be attributed to the significant increase in demand for its AI chips. The company raised its annual revenue forecast for AI-linked chips to $11 billion for 2024, up from the previous estimate of $10 billion.

Shares surged 12% in extended trading following the announcement, reflecting investor confidence in Broadcom’s strategic position in the AI chip market.

Broadcom’s AI chips are crucial in applications such as OpenAI’s ChatGPT, facilitating high data movement. The company’s custom chips unit has attracted significant orders from large cloud providers, reducing its dependence on Nvidia’s (NASDAQ: NVDA) processors.

Revenue from AI products reached $3.1 billion in the second quarter, contributing to the company’s overall growth.

In addition to the strong performance in the AI chip segment, Broadcom’s infrastructure software segment revenue more than doubled, partially due to the acquisition of VMware. Analysts have positively updated their price targets and ratings following the Q2 earnings report, further boosting investor sentiment.

Broadcom’s stock price surge reflects its strong position in the AI chip market and its partnerships with major cloud providers like Google (NASDAQ: GOOG) and Meta (NASDAQ: META).

The stock split is expected to attract more retail investors, potentially increasing market liquidity and stock price stability.

With the raised revenue forecast indicating strong future growth potential driven by AI-related demand, Broadcom is well-positioned to capitalize on the growing AI industry and maintain its competitive edge against rivals like Nvidia.

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