Shares of Broadcom Inc. are in focus, having risen significantly in the post-market trade on Nasdaq after the company reported its first-quarter earnings for the fiscal year 2026, where revenue surged 29% to $19.3 billion, beating Wall Street expectations.
The shares of Broadcom ended trade on Wednesday with gains of 1.18%. However, in the post-market trade, the shares have surged more than 5% amid positive trends in the AI and earnings beat.
While the revenue surge of 29% was a key beat, what stood out for Broadcom in Q1 was the whopping 106% year-on-year growth when it comes to AI-related revenue, which reached $8.4 billion.
The semiconductor and infrastructure software company posted GAAP net income of $7.3 billion and non-GAAP net income of $10.2 billion for the quarter ended February, reports Investing.
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After Broadcom was able to double its AI-related revenue for the quarter, its CEO, Hock Tan, attributed the rapid growth to demand for custom AI accelerators and AI networking products.
What raised eyebrows was the extremely bullish commentary coming from Tan, who told CNBC International that the company's AI-related revenue will reach $100 billion, up from $8.4 billion generated in the February quarter. The company is expecting an AI-related revenue of $10 billion in this current quarter. The overall revenue guidance for Q2 stands at $22 billion.
Broadcom is a company heavily involved in the global semiconductor and AI push. The company helps its customers translate their chip designs into silicon, thereby providing back-end support before the processors are sent off to factories.
Apart from its Q1 earnings, Broadcom has also announced a new share buyback program of up to $10 billion, adding to the positive sentiment around the stock.
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