Jim Cramer warns investors as retail stocks soar
- Broadcom reported adjusted earnings per share of $1.42, exceeding analyst expectations.
- The company achieved significant year-over-year revenue growth driven by semiconductors and AI.
- Positive analyst ratings followed the earnings report, contributing to a notable increase in Broadcom's stock price.
On December 13, 2024, Broadcom Inc. published its fourth-quarter earnings report for fiscal year 2024, revealing adjusted earnings per share of $1.42, surpassing analyst expectations of $1.38. While quarterly revenue reached $14.05 billion, it fell short of the estimated $14.09 billion, though this represented a notable year-over-year increase of 51%. This positive performance was driven by significant growth in infrastructure software and semiconductor revenue, particularly in AI revenue, which surged 220% year-on-year. Following the earnings announcement, several analysts issued positive ratings and increased price targets for Broadcom's stock. As a result, Broadcom shares experienced a notable gain, trading 6.99% higher at $240.52 shortly after the earnings report. Market confidence in Broadcom was bolstered by its robust fiscal growth, highlighted by annual revenue of $51.6 billion, marked by improvements in AI and network infrastructure sectors. This upward momentum raises questions about the company's future performance and its ability to maintain investor confidence amidst an evolving tech landscape. Analysts suggest that the combination of strong earnings and enhanced market expectations could pave the way for continued growth in Broadcom’s stock price.