Broadcom Announces $10 Billion Share Buyback Plan, Highlighting Confidence in AI-Related Investments
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On Tue, 8 Apr, 8:02 AM UTC
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Broadcom announces new $10 billion share buyback plan
Broadcom said on Monday it was launching a new share buyback program of up to $10 billion, set to run through the end of the year, sending its shares up nearly 3% in extended trading. CEO Hock Tan said the move reflects confidence in Broadcom's semiconductor and infrastructure software franchises, particularly its position in artificial intelligence-related investments. Shares of Palo Alto, California-based Broadcom, which has a market value of about $724.76 billion, closed about 5% higher on Monday, snapping a two-day losing streak amid U.S. President Donald Trump's tariff announcement. Broadcom, which supplies semiconductors to Apple , last month forecast strong second-quarter revenue and hinted about new potential customers that could boost revenue in a highly competitive market. The chipmaker is seeing red-hot demand for its custom AI chips from cloud computing companies looking for an alternative to the costly processors designed by Nvidia.
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Broadcom unveils $10B stock buyback program; shares rise afterhours By Investing.com
Investing.com -- Broadcom unveiled Monday a $10 billion stock buyback program amid strong cash flow generation and confidence in AI-led demand for its chips. Broadcom Inc (NASDAQ:AVGO) rose more than 3% in afterhours trading. "We are uniquely positioned in mission critical infrastructure software and enabling hyperscalers to drive innovation in generative AI into their expanding subscriber platforms," said Hock Tan, President and CEO of Broadcom. Under the plan, the company said it would repurchase up to $10 billion of its common stock through December 31, 2025.
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Broadcom announces new $10 billion share buyback plan
(Reuters) -Broadcom said on Monday it was launching a new share buyback program of up to $10 billion, set to run through the end of the year, sending its shares up nearly 3% in extended trading. CEO Hock Tan said the move reflects confidence in Broadcom's semiconductor and infrastructure software franchises, particularly its position in artificial intelligence-related investments. Shares of Palo Alto, California-based Broadcom, which has a market value of about $724.76 billion, closed about 5% higher on Monday, snapping a two-day losing streak amid U.S. President Donald Trump's tariff announcement. Broadcom, which supplies semiconductors to Apple, last month forecast strong second-quarter revenue and hinted about new potential customers that could boost revenue in a highly competitive market. The chipmaker is seeing red-hot demand for its custom AI chips from cloud computing companies looking for an alternative to the costly processors designed by Nvidia . (Reporting by Jaspreet Singh in Bengaluru; Editing by Shinjini Ganguli and Maju Samuel)
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Broadcom launches a $10 billion share buyback program, reflecting strong confidence in its semiconductor and infrastructure software franchises, particularly in AI-related investments. The move sends shares up in after-hours trading.
Broadcom Unveils $10 Billion Share Buyback Program
Broadcom, the semiconductor and infrastructure software giant, has announced a new share buyback program of up to $10 billion, set to run through December 31, 2025 12. The announcement, made on Monday, sent the company's shares up nearly 3% in extended trading, reflecting investor enthusiasm for the move 1.
Strategic Confidence in AI-Related Investments
Hock Tan, President and CEO of Broadcom, stated that the buyback program reflects the company's confidence in its semiconductor and infrastructure software franchises, with a particular emphasis on its position in artificial intelligence-related investments 1. Tan elaborated, "We are uniquely positioned in mission critical infrastructure software and enabling hyperscalers to drive innovation in generative AI into their expanding subscriber platforms" 2.
Market Response and Financial Position
The announcement had an immediate positive impact on Broadcom's stock performance. Shares of the Palo Alto, California-based company, which has a market value of approximately $724.76 billion, closed about 5% higher on Monday 13. This uptick snapped a two-day losing streak that had been influenced by U.S. President Donald Trump's tariff announcement 3.
AI-Driven Demand and Market Competition
Broadcom's strategic move comes at a time when the company is experiencing significant demand for its custom AI chips. Cloud computing companies are increasingly looking to Broadcom as an alternative to the costly processors designed by Nvidia 13. This surge in demand is positioning Broadcom as a key player in the highly competitive AI chip market.
Future Outlook and Revenue Projections
Last month, Broadcom forecast strong second-quarter revenue and hinted at new potential customers that could further boost its revenue in the competitive market 13. The company, which supplies semiconductors to major tech giants like Apple, is leveraging its strong cash flow generation and growing presence in the AI sector to fuel its growth strategy 2.
Implications for the Tech and AI Landscape
Broadcom's substantial buyback program and its focus on AI-related investments signal a broader trend in the tech industry. As companies increasingly invest in AI capabilities, semiconductor manufacturers like Broadcom are positioning themselves as crucial enablers of this technological shift. The move also highlights the growing competition in the AI chip market, with Broadcom emerging as a strong contender against established players like Nvidia 13.
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