Broadcom gains muscle in the US stock markets. The company, supplier to technological titans like Apple, rises more than 20%heading for its best stock market session since 2020. The reason for such an increase is found in its results for the fourth quarter, in which it has reported a brutal increase in sales of AI chips, beating revenue and profit expectations. Although the annual profit has been lower than last year, data linked to semiconductors and artificial intelligence have led the brand’s market capitalization to exceed one trillion dollars.
The integrated circuit manufacturer Broadcom posted net profits of $5,895 million in its fiscal year, which ended on November 3, which represents a decline of 58.1% compared to those obtained during the previous year. In addition, net income increased by 44%, to a high of $51,574 million, while costs of $38,111 million were incurred, a 94.3% increase.
On the other hand, in the fourth quarter there were profits of 4,324 million dollarss that contrasted with some ‘red numbers’ of 1,875 million dollars. In turn, turnover rose 7.5%, to 14,054 million dollars.
“Broadcom’s fiscal 2024 revenue grew 44% year-on-yearto a record $51.6 billion, as infrastructure software revenues increased to $21.5 billion due to the successful integration of VMware,” said Broadcom Chairman and CEO Hock Tan.
“Semiconductors reached a record $30.1 billion thanks to AI revenues of $12.2 billion. These, which grew 220% year-on-year“, were powered by our leading AI XPUs and our Ethernet networking portfolio,” he added.
After the publication of the results, Broadcom shares on the Nasdaq 100 soared 20.35% at 6:50 p.m. Spanish peninsular time, up to $217.43. This has allowed the technology company to overcome, for the first time, the barrier of one trillion dollars in market capitalization.
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