Broadcom on Monday announced the launch of a new share buyback program of up to $10 billion, set to run through the end of the year, which resulted in a nearly 3% rise in its shares during after-hours trading.
CEO Hock Tan stated that the move reflects confidence in Broadcom’s semiconductor and infrastructure software divisions, especially its position in AI-related investments.
Broadcom, based in Palo Alto, California, with a market value of approximately $724.76 billion, saw its shares close about 5% higher on Monday, breaking a two-day losing streak following U.S. President Donald Trump’s tariff announcement.
Last month, the company, which supplies semiconductors to Apple, forecasted strong second-quarter revenue and hinted at new potential customers that could drive growth in a highly competitive market.
Broadcom is also experiencing strong demand for its custom AI chips from cloud computing companies seeking an alternative to Nvidia’s expensive processors.
Broadcom’s new share buyback plan, with its strategic investments in AI and strong market performance, underscores the company’s confidence in its growth trajectory, positioning it well for continued success in the semiconductor industry.
