Broadcom (AVGO) Shares Soar 2.24% on 46% AI Revenue Surge

Broadcom (AVGO) shares surged 2.24% today, reaching their highest level since July 2024, with an intraday gain of 2.81%.

Broadcom's AI semiconductor revenue experienced a remarkable 46% year-over-year increase, reaching over $4.4 billion in Q2 2025. This surge in revenue was a key driver behind the company's record quarterly revenue of $15 billion, marking a 20% year-over-year growth. Additionally, Broadcom's adjusted earnings per share exceeded analyst estimates, further bolstering investor confidence and contributing to the stock's rally.

The launch of the Tomahawk 6 networking chip in June 2025 showcased Broadcom's technological advancements, positioning the company as a leader in AI infrastructure. This strategic move has garnered positive market sentiment, reinforcing Broadcom's competitive edge in the semiconductor industry.

Analysts have taken notice of Broadcom's robust financial performance and strategic positioning in AI semiconductors. Multiple analysts, including HSBC and KeyBanc, have upgraded Broadcom’s stock, with HSBC raising its price target by 70% to $400. These upgrades have heightened expectations and contributed to the stock's appreciation.

Broadcom's strategic partnerships with major technology companies, such as Meta, Apple, and OpenAI, have further solidified its market strength. These collaborations, aimed at developing custom silicon solutions, have enhanced Broadcom's revenue visibility and market position, positively impacting its stock price.