Broadcom (AVGO) Stock Climbs As Meta and Microsoft Results Signal Soaring AI And Data Center Demand
Broadcom Inc (NASDAQ:AVGO) saw its stock rise 3.3% to $198.83 Thursday following blockbuster earnings reports from both Meta Platforms and Microsoft Corp, which highlighted surging capital expenditures and expanding cloud infrastructure—key areas where Broadcom is deeply entrenched.
What To Know: Meta's first-quarter results revealed a significant increase in capital spending, now forecast to reach as high as $72 billion for the full year, largely driven by investments in AI and data centers. Microsoft also delivered strong cloud growth, with Azure revenue surging 33% and total Microsoft Cloud revenue hitting $42.4 billion, up 20% year-over-year.
Broadcom, a leading semiconductor and infrastructure software company, plays a critical role in powering hyperscale data centers and AI workloads through its networking chips, custom silicon, and switching technologies.
As companies like Meta and Microsoft aggressively expand their AI infrastructure, Broadcom stands to benefit directly from increased orders for its high-performance chips and interconnect solutions.
The company is also a key supplier for custom ASICs used in AI and machine learning systems. With hyperscaler demand accelerating, investors could be betting Broadcom's future earnings will reflect this booming market.
Read Also: Nvidia Stock Surges After Hours: What’s Going On?
How To Buy AVGO Stock
By now you're likely curious about how to participate in the market for Broadcom – be it to purchase shares, or even attempt to bet against the company.
Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy “fractional shares,” which allows you to own portions of stock without buying an entire share.
In the case of Broadcom, which is trading at $198.07 as of publishing time, $100 would buy you 0.5 shares of stock.
If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to “go short” a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.
According to data from Benzinga Pro, AVGO has a 52-week high of $251.88 and a 52-week low of $122.33.