Broadcom Shares Jump 10% On Strong Q3 Results, AI Partnership Hopes

Broadcom Inc. (NASDAQ:AVGO) surged more than 10% Friday after the chipmaker reported better-than-expected fiscal third-quarter results, issued strong guidance, and was linked to a partnership with OpenAI.

For the quarter ended August 3, Broadcom posted adjusted EPS of $1.69 on revenue of $15.95 billion, topping analyst estimates of $1.66 and $15.82 billion. Semiconductor solutions revenue jumped 57% year-over-year to $9.17 billion, while infrastructure software sales, including VMware, rose 17% to $6.79 billion.

Looking ahead, Broadcom forecast fiscal fourth-quarter revenue of about $17.4 billion, ahead of consensus at $17.01 billion. The company said AI semiconductor revenue was expected to accelerate to $6.2 billion, above projections of $6 billion.