Broadcom Inc. (NASDAQ: AVGO) Shares Soar Following NVIDIA’s Impressive Results and Strong Guidance.
Broadcom Inc. (NASDAQ: AVGO) experienced a significant surge in its shares on Thursday due to the impressive performance in the first quarter and encouraging guidance provided by NVIDIA Corporation (NASDAQ: NVDA).
NVIDIA exceeded all expectations, as reported by Benzinga Pro. Their adjusted EPS of $1.09 surpassed estimates of 92 cents, and their sales reached $7.19 billion, surpassing estimates of $6.52 billion. In addition, NVIDIA projected second-quarter revenue of $11 billion, with a possible variation of 2%, in comparison to the estimated $7.15 billion.
This impressive announcement had an immediate positive impact on Broadcom, leading to a surge of over 7% during Thursday’s trading session. Susquehanna analyst Christopher Rolland, recognizing the positive outlook, maintained Broadcom’s Positive rating and increased the price target from $690 to $785 on Thursday morning.
Investors are now eagerly awaiting Broadcom’s second-quarter earnings report, scheduled to be released on June 1 after the market closes. Estimates from Benzinga Pro suggest that Broadcom will achieve an EPS of $10.08 with revenue reaching $8.7 billion.
Broadcom Inc. (AVGO) had a positive start on Thursday as it opened at $698.26, surpassing its previous closing price of $679.46. However, the stock experienced some ups and downs throughout the day, trading between $690.75 and $732.08. The trading volume for AVGO was 253,087, which is lower than the average volume over the past three months, standing at 2,302,096. At the same time, the market capitalization of AVGO was reported to be $284.4 billion.