Broadcom surpasses earnings expectations and declares a 10-for-1 stock split.

• On Wednesday, Broadcom reported earnings for the second fiscal quarter that surpassed analyst predictions.
• The company announced a 10-1 stock split, which will commence trading on a split-adjusted basis on July 15.

On Wednesday, the company posted earnings for the second fiscal quarter that surpassed analyst predictions. Additionally, it announced a 10-1 stock split, which will commence trading on a split-adjusted basis on July 15.

The stock rose about 10% in extended trading.

The company's performance for the quarter ended in May differed from LSEG's consensus estimates.

• Earnings per share: $10.96 adjusted vs. $10.84 expected
• Revenue: $12.49 billion vs. $12.03 billion expected

The chipmaker anticipates $51 billion in sales for its fiscal 2024 year, surpassing its earlier forecast and slightly exceeding analyst predictions of $50.42 billion.

In the current quarter, Broadcom earned $2.12 billion in net income, which amounts to $4.42 per share, compared to $3.48 billion in net income, or $8.15 per share, in the previous year.

Broadcom is among the chipmakers profiting from the AI industry due to its ability to run AI applications. The company reported $3.1 billion in sales during the quarter from AI products. One of its partners, NVIDIA, designs its own AI chip called a TPU.

Additionally, the company stated that revenue from VMware, an enterprise software company it acquired for $69 billion in the previous year, also contributed to its sales growth and projections for the remainder of the year.

Broadcom stated that the company's overall revenue increased by 43% annually during the quarter. However, without VMware sales, the revenue growth would have been 12% on a year-over-year basis.