Broadcom Stock Drops Despite Record Revenue and Fourth Highest Trading Volume

Volume AlertsFriday, Jun 6, 2025 8:00 pm ET
1min read

On June 6, 2025, Broadcom (AVGO) experienced a 5.00% decline in its stock price, marking the second consecutive day of losses, with a total decrease of 5.42% over the past two days. The company's trading volume reached $102.60 billion, making it the fourth highest in the market for the day.

Broadcom reported a record revenue of $15.004 billion for the second quarter of fiscal year 2025, reflecting a 20% increase from the previous year. The company's GAAP net income surged by 134% to $4.965 billion, while non-GAAP net income rose by 44% to $7.787 billion. Additionally, Broadcom achieved an adjusted EBITDA of $10.001 billion, representing 67% of its revenue, and generated a free cash flow of $6.411 billion.

Key highlights of the quarter include a 46% year-over-year growth in AI semiconductor solutions revenue, driven by strong demand for AI networking. Broadcom also returned $7 billion to shareholders through dividends and stock repurchases. The company repurchased 25.3 million shares for $4.216 billion and declared a quarterly dividend of $0.59 per share.

Looking ahead, Broadcom provided guidance for the third quarter of fiscal year 2025, projecting revenue of approximately $15.8 billion, a 21% increase from the prior year period. The company anticipates continued growth in its AI semiconductor revenue, expecting it to reach $5.1 billion in the third quarter.

Despite narrowly beating Wall Street's targets for its fiscal second quarter and providing optimistic guidance, Broadcom's stock fell in extended trading. The company's management remains optimistic about its growth trajectory, driven by ongoing investments from hyperscale partners and robust demand for its AI solutions. Broadcom continues to focus on returning excess cash to shareholders while maintaining a strong business model.