Broadcom’s AI-Driven Earnings Surge Sparks Stock Rally
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BTCCSquare news:
Broadcom shares surged 10.7% in early trading after exceeding fiscal Q3 expectations with $1.69 adjusted EPS and $16 billion revenue. The semiconductor giant's AI accelerator business drove a 63% year-over-year revenue jump in artificial intelligence segments, offsetting weaker GAAP earnings of $0.85 per share.
Free cash FLOW outpaced net income at $7 billion, marking 46.6% annual growth. At a $1.6 trillion valuation, the stock trades at 168x earnings—a premium multiple reflecting Wall Street's projected 30% annualized growth rate. The divergence between operational strength and accounting results presents a valuation paradox for investors.
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