Broadcom Surges to Eighth Most Traded Stock with $126 Billion Volume

On April 9, 2025, Broadcom (AVGO) saw a significant surge in trading volume, reaching $126.16 billion, marking a 32.6% increase from the previous day. This surge placed Broadcom as the eighth most traded stock of the day. The company's stock price also rose by 18.66%, marking the third consecutive day of gains, with a total increase of 26.56% over the past three days.

Broadcom's recent announcement of a $10 billion stock buyback program has been met with enthusiasm by investors. The program, which was revealed on Monday, has led to a positive outlook for the company's future prospects. CEO Hock Tan expressed confidence in Broadcom's ability to excel in infrastructure software for mission-critical operations and its potential to help hyperscalers innovate with generative AI on their platforms.

The stock buyback program is seen as a positive indicator of the company's financial health. By reducing the number of outstanding shares, the value of the remaining shares is increased, which is expected to drive the stock price upward in the long run. This move aligns with Broadcom's strong financial performance, including a 25% year-over-year increase in first-quarter fiscal 2025 revenues and a 45.5% increase in earnings per share (EPS).

Broadcom's execution processing units (XPUs) are gaining traction in the market, particularly as AI hyperscalers seek efficient solutions for training AI models. The company expects the market size for its XPUs to reach $60 billion to $90 billion by fiscal 2027, a significant increase from the $12.2 billion in 2024. This growing demand for XPUs is driven by their ability to perform tasks at a lower cost compared to traditional GPUs.

Broadcom's strong business model, which includes a 13% increase in dividend payout over the past five years and a payout ratio of 52%, further supports its financial stability. The company generated a solid free cash flow of $19.4 billion in fiscal 2024, providing ample resources for dividends and share repurchases. This financial strength, combined with the growing demand for XPUs and the $10 billion stock buyback program, positions Broadcom for continued growth and investor confidence.