Broadcom (AVGO) Soars 7% on 63% AI Sales Surge

Broadcom's stock surged 7% in pre-market trading on September 5, 2025, driven by a significant 63% year-over-year growth in AI sales, reaching $5.2 billion. This robust performance was highlighted by CEO Hock Tan, who emphasized the company's strong investment in AI semiconductor revenue, which is expected to climb to $6.2 billion in the current quarter.

Broadcom's third-quarter financial results were impressive, with revenue reaching a record $16 billion, a 22% increase from the previous year. The company's AI semiconductor revenue growth accelerated to 63% year-over-year, driven by strong demand for custom AI accelerators and networking solutions. This performance underscores Broadcom's leadership in the AI semiconductor market, where it continues to see significant growth and investment from its customers.

Broadcom's financial health remains robust, with a record free cash flow of $7 billion in the third quarter, up 47% year-over-year. The company's adjusted EBITDA increased by 30% year-over-year to $10.7 billion, reflecting strong operating leverage. Broadcom's commitment to returning excess cash to shareholders was evident in the third quarter, as it returned $2.8 billion through cash dividends.