Investing.com -- Broadcom upgraded its annual revenue guidance after reporting Wednesday fiscal second-quarter results that topped expectations, driven by record AI revenue, and the chipmaker also unveiled a ten-for-one stock split.
Broadcom Inc (NASDAQ:AVGO) surged 12% in afterhours trading following the report.
Broadcom announced adjusted earnings per share of $10.96 on revenue of $12.49B. Analysts polled by Investing.com anticipated EPS of $10.85 on revenue of $10.85B.
The beat on the top line was boosted by a record $3.1 billion in revenue from AI products during the quarter as infrastructure software revenue accelerated as businesses continue to adopt the "VMware (NYSE:VMW) software stack to build their own private clouds," the company said.
Semiconductor solutions, its core business, rose 6% to $7.20B, while infrastructure software, which includes Vmware, rose 175% to $5.29B from the same period a year earlier.
The company also announced a ten-for-one stock split; expected to start on July 15.
Looking ahead, fiscal year 2024 revenue was guided to $51B, up from $50B previously.
The chipmaker declared a quarterly common stock dividend of $5.25 per share, payable Jun. 28 to shareholders of record as of Jun. 24.