Broadcom shares surge on earnings beat, increased demand for AI products

Shares of Broadcom climbed after the company reported better-than-expected earnings and revenue for the second quarter. The chipmaker’s strong performance is attributed to its position in the growing market for custom AI chips. Broadcom also announced a 10-for-1 stock split, which is set to begin trading on a split-adjusted basis on July 15. Analysts believe that Broadcom is well-positioned to benefit from the increasing investments in AI and consider it a top pick in the sector. The company expects sales of around $51 billion for its fiscal 2024 year.