US Stock Market News | Broadcom soared 15% at one point, reaching a historical high stock price

According to Zhitong Finance APP, on Thursday, Broadcom (AVGO.US) surged 15% at one point, marking its largest gain in four years, with the stock price reaching $1735.85, hitting a historical high. As of the time of writing, the stock rose over 11% to $1672.

Benefiting from strong demand for AI products, the company's quarterly performance exceeded analysts' expectations and raised its full-year performance guidance, while also announcing a 10-for-1 stock split plan.

According to the financial report, Broadcom's adjusted net revenue for the second quarter was $12.49 billion, higher than analysts' expected $12.06 billion. Semiconductor solutions revenue was $7.2 billion, surpassing the expected $7.12 billion. AI product revenue reached $3.1 billion. Broadcom's net profit for the second quarter was $2.12 billion, with an adjusted earnings per share of $10.96, higher than analysts' expected $10.80.

Broadcom also raised its performance guidance for the fiscal year, expecting revenue of approximately $51 billion by the end of October, higher than analysts' expected $50.58 billion and Broadcom's previous expectation of nearly $50 billion. In order to make its stock more attractive to retail investors, following in the footsteps of NVIDIA, Broadcom also announced a 1-for-10 stock split to be implemented on July 15, with a quarterly stock dividend of $5.25. Kirsten Spears, Broadcom's Chief Financial Officer, stated in a release that this split will "make it easier for investors and employees to hold Broadcom stock."