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Barchart

Aditya Raghunath

A $10 Billion Reason to Buy Broadcom Stock Now

Broadcom Hock Tan AVGO Semiconductor VMware

Broadcom (AVGO) delivered a bombshell announcement that sent shares soaring 9.4% on Friday, revealing a massive $10 billion order from a mystery fourth customer for its custom artificial intelligence (AI) chips.

The chipmaker's fiscal third-quarter results exceeded expectations, with earnings of $1.69 per share beating the $1.65 estimate and revenue of $15.96 billion topping the $15.83 billion consensus. But it was CEO Hock Tan's revelation of the enormous new customer order that captured Wall Street's attention.

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