Broadcom Inc. (NASDAQ: AVGO) is a leading supplier of connectivity chips to smartphone makers. Broadcom stock has been on a roller coaster ride since the start of 2021. However, the stock recently rose near its 52-week high after delivering another impressive quarter. Broadcom shares are now up more than 17 percent on a year-to-date basis, while the company’s total market value has exceeded $204 billion.
Financial Highlights: Q3, 2021
Broadcom recently announced earnings of $4.20 per share for its fiscal third quarter ended August 1, significantly higher than $1.45 per share in the same period last year. Excluding certain items, Broadcom earned $6.96 per share on an adjusted basis, easily surpassing the consensus forecast of $6.88 per share.
Total revenue for the quarter climbed 16 percent on a year-over-year basis to $6.78 billion, beating analysts’ average estimate of $6.76 billion. The results were mainly driven by solid chip sales, which jumped 19 percent versus last year to $5.02 billion. Moreover, infrastructure software sales rose 10 percent to $1.76 billion.
Broadcom also released its sales outlook for the fourth quarter. It expects revenue of around $7.35 billion for the current quarter, above the consensus forecast of $7.23 billion.
Broadcom supplies chips to various industries such as wireless, cloud, and 5G infrastructure. The company will continue to enjoy higher demand for its chips due to the ongoing semiconductor shortage worldwide. The robust demand will also help Broadcom stock gain more value in the coming quarters. So, if you are looking to invest in Broadcom stock, it seems like a good time to make a decision.