Broadcom increased its quarterly dividend by 10%. The new payout stands at $0.65 per share.
The company supports this increase with its strong position in the artificial intelligence sector. Broadcom currently boasts a substantial $73 billion AI semiconductor backlog. Management views the dividend hike as a signal of confidence in future cash flow, despite recent stock price volatility following its latest earnings report.
Separately, financial firm New Street updated its outlook on Broadcom. The firm raised its price target on the stock from $400 to $420, while maintaining a "Buy" rating.
This analyst update follows a discussion regarding the company’s strong growth in AI-related revenue. Broadcom reported that AI revenue surged 74% year-over-year in the last quarter. The target adjustment addresses the stock’s valuation after a recent pullback.