Broadcom (AVGO) Jumps to Record Highs on Earnings Blowout, $10-Billion AI Deal

We recently published Monstrous Gains: 10 Stocks Leaving Wall Street in the Dust. Broadcom Inc. (NASDAQ:AVGO) is one of the best performers on Friday.

Broadcom Inc. rallied for a fourth straight day on Friday to hit a new all-time high, as investors cheered its stellar earnings performance and bagging of a $10 billion deal with an artificial intelligence firm.

In intra-day trading, the company jumped by as much as 16.4 percent to touch its highest 52-week price of $356.24, before trimming gains to end the day just up by 9.41 percent at $334.89 each.

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In an earnings report, Broadcom Inc. (NASDAQ:AVGO) said it swung to a net income of $4.14 billion from a $1.87 billion net loss in the same period last year. Net revenues grew 22 percent to $15.95 billion from $13.07 billion year-on-year, on the back of continued strength in AI accelerators, networking, and VMware.

The AI segment alone contributed $5.2 billion in revenues, marking a 63-percent jump year-on-year. It is expected to further jump to $6.2 billion in the fourth quarter of the year.

In a call with analysts, Broadcom Inc. (NASDAQ:AVGO) CEO Hock Tan announced that the company secured a $10 billion custom chip supply deal with an unnamed AI giant, but it was reported by Financial Times to be OpenAI.

According to Tan, the semiconductor giant will ship pretty strongly beginning 2026.

By the end of the month, common shareholders of Broadcom Inc. (NASDAQ:AVGO) as of September 22 are set to receive a quarterly dividend of $0.59 for every common share held. The dividends are payable on September 30, 2025.

While we acknowledge the risk and potential of AVGO as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AVGO and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.