Broadcom (NASDAQ: AVGO) stock was up 7.3% with Friday’s opening market bells after the company released Q4 results that topped analyst estimates, bolstering AVGO’s momentum as the semiconductor stock continues to make higher highs. On another note, the Broadcom earnings release seemed to reassure the wider scope of semiconductor investors – as Nvidia and Lam Research also traded higher on Friday morning.
Broadcom posted revenue of $5.6B for the fourth quarter, up 17% from last year, with software revenue specifically gaining 8% for a total of $1.8B. Beating analyst predictions, investors were more interested in the company’s Q1 outlook – to which the company expects revenue of $7.6B – ahead of Wall Street’s $7.3B predictions.
Broadcom CEO Hock Tan stated:
“Broadcom concluded the year with record fourth-quarter results driven by a rebound in enterprise, and continued strength from cloud and service provider demand. Our infrastructure software growth continues to be steady with our focus on strategic customers,”
“With the strength and breadth of our IP portfolio, we continue to be able to uniquely deliver leading-edge, best-in-class semiconductor solutions, and extend our leadership in our franchise markets.”
What’s more fascinating about Broadcom’s earnings is the trickle-down sentiment that affected gains amongst other semiconductor stocks. Positive earnings don’t have to just act as a company milestone, but a hallmark of overall industry health – hence investors flocked to Nvidia amongst others this morning. AVGO stock is currently trading with a gain of 9.5%, at a price of $637.70.
Should you invest in Broadcom shares?
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