Broadcom Shares Jump 13% In After-Hours Trading On Strong AI Results - Gary Black Says, 'This Should Help AI Stocks Tomorrow

Kaustubh Bagalkote

March 06, 2025

Broadcom Inc. (NASDAQ:AVGO) shares jumped 12.82% in after-hours trading Thursday after reporting better-than-expected first-quarter results, recovering from a 6.33% drop during regular trading hours amid a broader artificial intelligence chip selloff.

What Happened: The semiconductor giant posted first-quarter revenue of $14.92 billion, surpassing analyst estimates of $14.61 billion, along with adjusted earnings of $1.60 per share, exceeding the expected $1.49 per share, according to Benzinga Pro data.

The Future Fund LLC Managing Partner Gary Black highlighted Broadcom’s strong performance stating, “This should help AI stocks tomorrow.”

$AVGO: After falling -6.3% today on rival $MRVL ';s weak 1Q rev guidance, AVGO beat on 4Q results (Rev $14.9B vs $14.6B est; EPS $1.60 vs $1.50 est) and offered strong 1Q rev guidance ($14.9B vs $14.6B est) fueled by strong AI spending ($4.4B vs $4.2B est). This should help AIâ€¦
— Gary Black (@garyblack00) March 6, 2025

CNBC’s Jim Cramer shared a similar sentiment, writing, “Whoever is walking down Broadcom right now I think is making a mistake.”

Whoever is walking down Broadcom right now i think is making a mistake
— Jim Cramer (@jimcramer) March 6, 2025

The company expects continued AI momentum, projecting second-quarter AI semiconductor revenue of $4.4 billion as “hyperscale partners continue to invest in AI XPUs and connectivity solutions for AI data centers.” Overall second-quarter revenue guidance stands at approximately $14.9 billion, above analyst estimates of $14.76 billion.

See Also: Jeff Bezos Brings Amazon's Hard-Charging Culture, 50-Hour Workweek To Blue Origin: CEO Says Growth Led To ';More Bureaucracyâ€¦Less Focus'

Why It Matters: The selloff in AI chip stocks on Thursday included Nvidia Corp. (NASDAQ:NVDA), Advanced Micro Devices, Inc. (NASDAQ:AMD), and Taiwan Semiconductor Manufacturing Co. (NYSE:TSM), which fell in sympathy with Marvell Technology Inc.‘s (NASDAQ:MRVL) weaker guidance.

Broadcom has a consensus price target of $537.08 based on 26 analyst ratings, with recent targets from Morgan Stanley, Barclays, and Mizuho averaging $255.33.

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Image Via Shutterstock

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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