Broadcom AVGO Soars 8.65% on AI Revenue Surge

Broadcom's stock surged 8.65% in pre-market trading on September 5, 2025, driven by a series of positive developments and strong financial performance.

Broadcom's recent earnings report highlighted significant growth in its AI semiconductor business, with AI revenue accelerating to $5.2 billion in the third quarter. The company's guidance for the fourth quarter AI revenue of $6.2 billion exceeded expectations, contributing to the stock's positive momentum. Additionally, Broadcom secured a $10 billion order for its XPUs from a new customer, further boosting investor confidence.

During the earnings call, CEO Hock Tan announced his commitment to remain at the helm through at least 2030, which was well-received by investors. Tan's leadership has been instrumental in Broadcom's transformation into a leading player in the semiconductor and AI sectors. The company's strong performance in custom AI accelerators and networking, along with its robust financial metrics, including a 22% year-over-year revenue increase and a 47% rise in free cash flow, further solidified investor optimism.