The shares of semiconductor maker Broadcom soared by more than 24% on Friday, pushing the company’s valuation past the $1 trillion mark. The jump came in the aftermath of the company’s fourth-quarter earnings that enticed analysts and traders with a massive artificial intelligence (AI) revenue jump.
Broadcom reported total revenue of $14.05 billion, which marked a 51% year-over-year jump but came below Wall Street’s expectations of $14.09 billion. However, the company says it had $12.2 billion in AI revenue for fiscal 2024, a 220% increase compared to 2023.
Broadcom’s CEO Hock Tan told investors on the earnings call that his company is currently developing an AI chip that will be used by two hyperscalers, which he didn’t name. He also expects Broadcom to have an opportunity to rake in between $60 billion and $90 billion from AI chips by 2027.
“We see an opportunity over the next three years in AI,” Tan said. “Massive specific hyperscalers have begun their respective journeys to develop their own custom AI accelerators.”
Broadcom’s shares wrapped up Friday’s trading session with a 24.43% gain, and they saw their largest single-day jump of all time. The stock closed at $224.80 per share and is now 107.11% up year-to-date.