Broadcom Backs Itself with $10 Billion Buyback
U.S. chipmaker Broadcom has announced a $10 billion share buyback program, set to run through the end of 2025. Following the announcement on Monday, the company's shares rose nearly 3% in after-hours trading, according to Reuters.
Broadcom CEO Hock Tan stated that the decision reflects strong confidence in the company's semiconductor and infrastructure software businesses. He also noted the company's growing investments in artificial intelligence.
Valued at approximately $725 billion, Broadcom had previously issued a robust earnings forecast for the second quarter. The company cited potential new customer acquisitions as a factor that could further boost revenue.
Broadcom's custom AI chips are witnessing rising demand—particularly among cloud companies—as a more cost-effective alternative to Nvidia’s high-priced chips.
