Latest news with #BroadcomAVGO
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18 hours ago
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Broadcom Q2 Earnings Beat Estimates, Revenues Up Y/Y, Shares Fall
Broadcom AVGO reported second-quarter fiscal 2025 non-GAAP earnings of $1.58 per share, surpassing the Zacks Consensus Estimate by 0.64% and increasing 43.6% year over revenues increased 20% year over year to $15 billion, surpassing the Zacks Consensus Estimate by 0.37%. Broadcom's revenue growth in the second quarter of fiscal 2025 was driven by strong performance in AI semiconductors and VMware revenues benefited from continued investments from hyperscale partners in AI XPUs and connectivity solutions for AI data shares lost 4.01% in after-hours trading to $249.50 following the fiscal second-quarter results. Broadcom Inc. price-consensus-eps-surprise-chart | Broadcom Inc. Quote Semiconductor solutions revenues (56% of net revenues) totaled $8.4 billion, rising 17% year over year and missing the Zacks Consensus Estimate by 0.17%. AI-related revenues grew 46% year over year to $4.4 billion, which was a major driver of overall revenue growth. This growth was driven by higher shipments of networking solutions to hyperscalers for AI semiconductor revenues declined 5% year over year to $4 the second quarter of fiscal 2025, broadband, enterprise networking and server storage revenues were up revenue was down in the second quarter of fiscal 2025, while wireless revenue also decreased due to software revenues (44% of net revenues) rose 25% year over year to $6.6 billion, bolstered by the successful conversion of enterprise customers to the full VMware Cloud Foundation(VCF) software stack subscription. The non-GAAP gross margin was 79%, expanding 320 basis points (bps) year over and development, as a percentage of net revenues, decreased 210 bps year over year to 10.2%. Selling, general and administrative expenses also decreased 280 bps to 4%.Adjusted EBITDA increased 35% year over year to $10 billion. The adjusted EBITDA margin expanded 720 bps on a year-over-year basis to 66.7%.The non-GAAP operating margin grew 800 bps year over year to 65.3%. As of May 4, 2025, cash and cash equivalents were $9.47 billion compared with $9.31 billion as of Feb. 2, debt (including the current portion of $5.53 billion) was $67.28 billion as of May 4, 2025, compared with $66.58 billion as of Feb. 2, generated $6.55 billion in cash flow from operations compared with $6.11 billion in the previous quarter. The free cash flow was $6.41 billion compared with $6.01 billion in the prior of March 31, 2025, the company paid out a cash dividend of $0.59 per share of common stock, totaling $2.78 billion. For third-quarter fiscal 2025, Broadcom expects revenues of $15.8 billion, suggesting an increase of 21% from the prior-year period's semiconductor revenues are projected to grow 60% year over year to $5.1 billion, whereas non-AI semiconductor revenues are expected to reach $4 Software revenues are expected to grow 16% year over year to $6.7 revenues are anticipated to grow 25% year over year to $9.1 the third quarter of fiscal 2025, enterprise networking and broadband are expected to continue to grow storage, wireless and industrial are expected to be largely EBITDA is expected to be 66% of projected company anticipates the non-GAAP diluted share count to be 4.97 billion. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.) Currently, Broadcom carries a Zacks Rank #2 (Buy). Amphenol APH, Juniper Networks JNPR and Upwork UPWK are some other top-ranked stocks that investors can consider in the broader Zacks Computer & Technology sector. APH, JNPR and UPWK sport a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today's Zacks #1 Rank stocks shares have gained 33.2% in the year-to-date period. The Zacks Consensus Estimate for APH's full-year 2025 earnings is pegged at $2.66 per share, up by 1.5% over the past 30 days, suggesting growth of 40.74% from the year-ago quarter's reported shares have lost 4.4% in the year-to-date period. The Zacks Consensus Estimate for JNPR's full-year fiscal 2025 earnings has been revised upward to $2.08 in the past 30 days, suggesting year-over-year growth of 20.93%.UPWK shares have lost 7.7% in the year-to-date period. The Zacks Consensus Estimate for UPWK's full-year 2025 earnings is pegged at $1.14 per share, implying a rise of 9.62% from the year-ago quarter's levels. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Amphenol Corporation (APH) : Free Stock Analysis Report Juniper Networks, Inc. (JNPR) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report Upwork Inc. (UPWK) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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4 days ago
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Looking for AI Stocks? Use This Thematic Investing Tool
Zacks Thematic Screens lets you dive into 30 dynamic investment themes shaping the future. Whether you're interested in cutting-edge technology, renewable energy, or healthcare innovations, our themes help you invest in ideas that matter to you. Let's take a closer look at the Artificial Intelligence theme and analyze a top-ranked stock that the screen returned, such as Broadcom AVGO. This screen features diverse companies involved in AI, ranging from creators of software and hardware that power AI to those applying and utilizing this technology through automation, diagnostics, cognitive tasks, and more. Artificial Intelligence (AI) refers to the technology that enables computers and machines to simulate human intelligence and problem-solving capabilities to perform the cognitive functions usually associated with human minds. In general, AI systems work by ingesting large amounts of data with fast, iterative processing and intelligent algorithms. It then analyzes the data using neural networks for correlations and patterns and allows the software to learn automatically from these patterns to make predictions. Broadcom is evolving a broad portfolio of technologies to extend its leadership in enabling next-generation AI infrastructure. This includes foundational technologies and advanced packaging capabilities aimed at building the highest performance, lowest power custom AI accelerators. AVGO stock currently sports a favorable Zacks Rank #2 (Buy), with its earnings outlook shifting bullishly for its current fiscal year. Image Source: Zacks Investment Research Its recent set of quarterly results brought several positives, with AI revenue of $4.1 billion melting 77% higher year-over-year. The quarter's results were driven by robust demand for its AI solutions, with the company forecasting AI semiconductor revenue of $4.4 billion for Q2. Keep in mind that the stock is set to report quarterly results this week, with current consensus expectations indicating 42% year-over-year EPS growth on 20% higher sales. The company's sales have remained strong over recent periods thanks to the above-mentioned AI frenzy, as shown below. Image Source: Zacks Investment Research Zacks Thematic Screens lets you dive into 30 dynamic investment themes shaping the future. Whether you're interested in cutting-edge technology, renewable energy, or healthcare innovations, our themes help you invest in ideas that matter to you. Upon running the Zacks Artificial Intelligence Thematic screen, top-ranked Broadcom AVGO was returned. For those interested in viewing all the Thematic lists, please click here >>> Thematic Screens – Zacks Investment Research. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Broadcom Inc. (AVGO) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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13-05-2025
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Now that trade deals are getting done, this out-of-favor stock-market strategy may shine
About a month after 'Liberation Day' and the huge tariffs announced that day are now a distant memory, as tariffs between the U.S. and China were each largely rolled back. More on that later. UBS strategists led by Sean Simonds have a timely note about how the questions will now focus less on policy uncertainty and more on outcome uncertainty. 'We are possibly past the peak of uncertainty as more granular detail on tariffs and other policies come into focus,' they say. 'What comes after this, however, is the policy OUTCOME uncertainty,' with the capitalization the choice of the authors. 'It just doesn't seem right': My sister picks up the check for our parents, but later asks me to repay her I'm 65 and a widow with 5 children. Should I split my $1.1 million nest egg between them while I'm still alive? 'I'm so confused': Is the U.S.-China trade deal for real? I'm 55 and have $650K in my 401(k). Can I finally rest easy? My second wife says her 2 kids should inherit our estate, but I also have 2 kids. Is that fair? My husband and I spend more money on our daughter and her family than on my single son. Do we compensate him? The UBS team's assumptions were based on 10% universal tariffs and 60% on China — the latter of which is now double the actual tariff level, but given sector tariffs as well, probably a reasonable starting point as to guessing the economic implications. Their assumption is the U.S. economy will slow from a 2% year-over-year rate in the first quarter to 0.7% by the fourth quarter. 'Elevated, but uncertain volatility/risks suggest a value orientation (avoiding high valuations). However, the potential for continued economic momentum into 2026 suggests keeping exposure to some cyclical growth companies,' the UBS team say. So what's the right strategy? UBS suggests growth at a reasonable price. Granted, that's not a strategy that has worked recently: the Invesco S&P 500 GARP ETF GARP, for instance, has underperformed the broader S&P 500 SPX this year, over the last 52 weeks and the last three years. 'Growth at a reasonable price (GARP) investing became a lot more difficult in the last decade as valuations expanded and a narrower set of companies were able to generate consistent growth. After the recent derating and with economic transitions underway, we think GARP may find renewed interest,' they say. They produced this list of 29 stocks they think meet the criteria — on average, the companies trade at 30 times estimated 2025 earnings with a 19% expected return from UBS analysts. Tapping a valuation database called HOLT it inherited from Credit Suisse, the strategists said all of the stocks are in the top half of the market on operational quality, in the top quarter on growth and neither a value trap or too expensive, as well as being over $10 billion in market cap. The list ranges from well-known companies like Broadcom AVGO to On Holdings ONON, the Swiss sneaker maker backed by tennis star Roger Federer. Ticker Name Industry 2025e PE 2026e PE Price chg (since 31-Dec) AVGO Broadcom Inc Semiconductors & Semiconductor 32 27 -10% LLY Eli Lilly & Co Pharmaceuticals, Biotechnology 53 43 -2% CRM Salesforce Inc Software & Services 28 25 -16% NOW Servicenow Inc Software & Services 59 49 -8% INTU Intuit Inc Software & Services 34 30 5% BKNG Booking Holdings Inc Consumer Services 24 21 4% PGR Progressive Corp Insurance 18 18 21% ETN Eaton Corp Plc Capital Goods 26 23 -7% ANET Arista Networks Inc Technology Hardware & Equipment 34 29 -21% APH Amphenol Corp-Cl A Technology Hardware & Equipment 30 28 16% KLAC Kla Corp Semiconductors & Semiconductor 22 21 12% CTAS Cintas Corp Commercial & Professional Serv 49 44 18% EQIX Equinix Inc Equity Real Estate Investment 61 54 -8% CMG Chipotle Mexican Grill Inc Consumer Services 42 35 -15% ADSK Autodesk Inc Software & Services 35 30 -2% HLT Hilton Worldwide Holdings In Consumer Services 31 27 -2% IDXX Idexx Laboratories Inc Health Care Equipment & Servic 40 36 19% HEI Heico Corp Capital Goods 60 54 13% TW Tradeweb Markets Inc-Class A Financial Services 43 38 11% ROL Rollins Inc Commercial & Professional Serv 52 46 5% TYL Tyler Technologies Inc Software & Services 50 45 -2% VLTO Veralto Corp Commercial & Professional Serv 26 24 -4% EME Emcor Group Inc Capital Goods 19 17 -3% RYAN Ryan Specialty Holdings Inc Insurance 31 26 9% ONON On Holding Ag-Class A Consumer Durables & Apparel 41 32 -9% EQH Equitable Holdings Inc Financial Services 8 6 18% BSY Bentley Systems Inc-Class B Software & Services 40 35 10% MANH Manhattan Associates Inc Software & Services 41 37 -31% KNSL Kinsale Capital Group Inc Insurance 26 22 -2% Data: UBS/FactSet/Bloomberg A big day in financial markets is shaping up: Futures on the Dow YM00 are up more than 1,000 points as S&P 500 ES00 and Nasdaq 100 NQ00 contracts rally. Gold GC00 is tumbling. So are bonds: the yield on the 10-year Treasury BX:TMUBMUSD10Yrose 8 basis points. Need to Know starts early and is updated until the opening bell, but to get it delivered once to your email box. The emailed version will be sent out at about 7:30 a.m. Eastern. Key asset performance Last 5d 1m YTD 1y S&P 500 5659.91 -0.47% 5.53% -3.77% 8.37% Nasdaq Composite 17,928.92 -0.27% 7.20% -7.16% 9.72% 10-year Treasury 4.445 9.60 6.70 -13.10 -4.80 Gold 3219.3 -3.71% -0.23% 21.98% 37.44% Oil 62.89 9.89% 2.16% -12.49% -20.59% Data: MarketWatch. Treasury yields change expressed in basis points The U.S. and China, after trade talks in Geneva, agreed to cut tariffs on each other by 115 percentage points, for at least 90 days. Treasury Secretary Scott Bessent further added that talks on fentanyl, where tariffs on China remain in place, were positive. President Donald Trump over the weekend said he'll sign an executive order putting 'most favored nation' status on drug prices, a move that's only expected to impact government-run health programs. Eli Lilly LLY said its Zepbound drug led to superior weight loss than Novo Nordisk's NVO Wegovy in a Phase 3b trial. Apple AAPL is considering raises prices on the iPhone but won't blame tariffs if it does, according to a Wall Street Journal report. European defense stocks fell on the possibility of Russia-Ukraine peace talks, in Turkey on Thursday. India and Pakistan signed a U.S.-brokered ceasefire deal. Trump administration in talks to accept new Air Force One as gift from Qatar. Elizabeth Holmes's partner has a new blood-testing start-up. Chinese EV battery giant CATL aims to raise $4 billion in Hong Kong IPO. Morgan Stanley plotted this chart of 'inflation' mentions on U.S. corporate conference calls, taken from AlphaSense data, versus the year-over-year inflation rate. The next consumer price index report is due for release on Tuesday. Here were the most active stock-market tickers as of 6 a.m. Eastern. Ticker Security name TSLA Tesla NVDA Nvidia GME GameStop AAPL Apple PLTR Palantir Technologies AMZN AMD Advanced Micro Devices TSM Taiwan Semiconductor Manufacturing META Meta Platforms MSTR MicroStrategy In Alaska, Mother's Day was celebrated with free visits to see these ice-age survivors. One mother and son celebrated the weekend by each getting master's degrees from Texas Christian University. A Congressman revealed a secret passage inside the U.S. Capitol that dates back to the 1700s. As the Dow and S&P claw back their 2025 losses, they're setting up for an extremely rare comeback victory The bulls are back in town. Goldman and this Wall Street optimist are lifting their S&P 500 targets on tariff relief. 'I am scared to death that I'll run out of money': My wife and I are in our 50s and have $4.4 million. Can we retire early? 'Be vigilant with your finances': My IRA had an unknown beneficiary designation. How could this happen? My eldest son refused to share his father's $500K inheritance with his siblings. Should I cut him off?
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28-03-2025
- Business
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3 Semiconductor Stocks to Buy Amid Rising Data Center Demand
As the digital era continues to evolve, data centers stand at the heart of technological advancement, powering everything from cloud computing to artificial intelligence (AI).In 2025, the growing demand for data centers will be fueled by advancements in AI, cloud computing and the need for more efficient infrastructure. This surge is driving key trends, such as hyperscale data centers, liquid cooling, edge computing, and a heightened focus on sustainability and energy the Fortune Business Insight report, the global data center market is projected to grow from USD 269.79 billion in 2025 to USD 584.86 billion by 2032, seeing a CAGR of 11.7%, reflecting the sector's robust growth, driven by increasing data storage and processing companies, including Credo Technology CRDO, Broadcom AVGO and Marvell Technology MRVL, are likely to be among the key beneficiaries of this trend, as semiconductors are the foundational components of the hardware that powers data centers. The semiconductor industry is poised to benefit significantly from the increasing data center market in 2025, driven by the surge in AI and high-performance computing workloads leading to the rising demand for high-performance chips, particularly Graphics Processing Units (GPUs) and memory like High Bandwidth Memory (HBM).As AI models grow more complex, the need for faster processing and efficient data storage has made GPUs and HBM crucial components. GPUs enable parallel processing for machine learning and deep learning tasks, while HBM provides the high-speed memory needed to handle massive datasets. This trend is expected to continue as AI applications become increasingly central to business and technological in DRAM and NAND pricing will act as tailwinds for semiconductor stocks catering to the memory semiconductor industry is expected to continue its growth trajectory in 2025, driven by strong demand for AI and data center technologies, as well as increasing chip demand across various sectors. According to the Semiconductor Industry Association, global semiconductor sales reached $56.5 billion in January 2025, marking a 17.9% increase from $47.9 billion in January 2024. The global semiconductor market is projected to maintain its upward momentum, with sales anticipated to reach $697 billion in the immense growth prospects amid the rising data center demand, it is prudent for investors to look for fundamentally strong semiconductor stocks that are poised to benefit from this trend. Here, we are discussing three aforementioned stocks — CRDO, MRVL and AVGO — that look promising. Credo Technology is gaining a strong market presence in both Ethernet and Active Electrical Cables (AECs) solutions specialized for data centers. AEC products experienced triple-digit sequential growth in the third quarter of fiscal 2025, driven by its increasing adoption in the data center demand for AECs grew as they proved to be more reliable than laser-based optical solutions, with ZeroFlap AECs offering more than 100 times better reliability than rack-to-rack made AECs an increasingly attractive option for data center applications, contributing to the new expansion of AEC usage and solidifying this Zacks Rank #1 (Strong Buy) company's market position. You can see the complete list of today's Zacks #1 Rank stocks Zacks Consensus Estimate for Credo Technology's 2025 earnings is pegged at 63 cents per share, revised upward by 26% over the past 30 days. CRDO has skyrocketed 100.2% in the trailing 12 months compared with SPDR S&P Semiconductor ETF's XSD decline of 8.6%. Credo Technology Group Holding Ltd. price-consensus-chart | Credo Technology Group Holding Ltd. Quote Broadcom is capitalizing on the growing investments in AI data centers, solidifying its role as a key player in the evolving data center Zacks Rank #2 (Buy) company recently launched the Sian3 and Sian2M high-speed networking chips for AI data centers, with Sian3 utilizing advanced 3-nanometer process technology for over 20% power reduction in optical modules. At the same time, Sian2M enhances power efficiency over multi-mode fiber to meet the growing demand for high-bandwidth connectivity in AI and ML recent introduction of PCIe Gen 6 technology, tested with Micron and Teledyne LeCroy, enhances AI data center performance with advanced telemetry and diagnostics through its Interoperability Development company's consensus mark for 2025 earnings is pegged at $6.56 per share, which has increased 3.9% over the past 30 days. Broadcom has rallied 29.8% in the trailing 12 months and outperformed the SPDR S&P Semiconductor ETF. Broadcom Inc. price-consensus-chart | Broadcom Inc. Quote Marvell Technology is capitalizing on robust demand in the data center market, offering solutions like pulse amplitude modulation (PAM) chips, digital signal processors, silicon photonics and laser drivers that enhance data center communication. The Zacks Rank #2 company's networking solutions, like PAM products and ZR electro-optics, are gaining traction as data centers are becoming increasingly fundamental for AI due to the massive computing power, storage and networking capabilities required to train and deploy AI models efficiently. Its leadership in AI-driven data center infrastructure, custom silicon and high-speed networking has been strengthening its innovation edge, Marvell Technology partnered with TeraHop to demonstrate the industry's first end-to-end PCIe Gen 6 over optics at OFC 2025, showcasing PCIe's extended reach and low-latency capabilities using Marvell's Alaska PCIe Gen 6 retimer and TeraHop's active optical cable, aimed at enhancing AI-driven data centers with scalable, high-performance company's consensus mark for fiscal 2026 earnings is pegged at $2.76 per share, which has decreased 1.8% over the past 30 days. MRVL has declined 8.5% in the trailing 12 months, in line with the returns of the SPDR S&P Semiconductor ETF. Marvell Technology, Inc. price-consensus-chart | Marvell Technology, Inc. Quote Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Marvell Technology, Inc. (MRVL) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report SPDR S&P Semiconductor ETF (XSD): ETF Research Reports Credo Technology Group Holding Ltd. (CRDO) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
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24-03-2025
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Seeking Income? These 3 AI Stocks Pay Dividends
Dividends come with many great perks, with the payouts essentially reflecting a form of 'payday' in the market. Technology sector stocks are often overlooked by income-focused investors, as these companies commonly use spare cash to fuel further growth. But perhaps to the surprise of some, several stocks involved closely in the AI trade – Broadcom AVGO, Vertiv VRT, and NVIDIA NVDA – shell out dividend payments. For those interested in getting paid with some AI exposure, let's take a closer look at each. Vertiv has continued to see stellar growth thanks to hot demand for its cooling solutions, with EPS climbing 77% on the back of a 26% move higher in sales throughout its latest period. It's enjoyed a nice sales acceleration as a result, as shown below. Image Source: Zacks Investment Research Shares currently yield a modest 0.2% annually, lower than that of the S&P 500 and the Zacks Technology sector average. Notably, the EPS outlook for its current fiscal year continues to be bullish, with the $3.59 per share expected up 23% over the last year. Image Source: Zacks Investment Research Broadcom has long been recognized as a strong dividend technology player thanks to its rock-solid cash-generating abilities that have regularly allowed it to boost payouts. The company boasts a sizable 12.5% five-year annualized dividend growth rate, with shares currently yielding 1.2% annually. Below is a chart illustrating dividends/share on a quarterly basis. Image Source: Zacks Investment Research The stock also boasts the highly-coveted Zacks Rank #1 (Strong Buy) thanks to a bullish EPS outlook, with analysts moving their expectations higher across the board. Current fiscal year growth rates are hard to ignore, with AVGO expected to see 34% EPS growth on 20% higher sales. Image Source: Zacks Investment Research NVIDIA continues to be an investor favorite thanks to its cutting-edge Data Center offerings that have resulted in unprecedented growth, with Data Center sales of $35.6 billion throughout its latest period up 90% year-over-year and 16% sequentially. The rich demand backdrop has kept the stock at a favorable Zacks Rank #2 (Buy), with analysts continuing to remain bullish. And given the positive reaction to the company's GTC AI conference just last week, it's clear that the company remains a prime selection for the AI frenzy. Image Source: Zacks Investment Research NVDA shares currently yield a tiny 0.1% annually. But while the yield remains fractional relative to other dividend-paying stocks, the raw share performance has muted this concern entirely. The company raised the payout by 150% last year in May, though no increases have come since. Image Source: Zacks Investment Research Bottom Line Dividends come with great perks for investors, providing a passive income stream and the ability to maximize returns through dividend reinvestment. Although all three dividend-paying tech stocks above – Broadcom AVGO, Vertiv VRT, and NVIDIA NVDA – aren't high-yield, the bullish outlook for these companies' AI offerings can't be overlooked by income-focused investors seeking the join the frenzy. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report Vertiv Holdings Co. (VRT) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
