Broadcom Stock Jumps On $10 Billion Buyback Authorization

Broadcom Inc AVGO shares are rising in Monday’s after-hours session after the company announced a $10 billion buyback.

What Happened: After the market close on Monday, Broadcom announced its board authorized a new share repurchase program, allowing the company to repurchase up to $10 billion of its common stock through the end of the year.

“Today’s announcement of a $10 billion share repurchase program reflects the Board’s confidence in the strength of Broadcom’s diversified semiconductor and infrastructure software product franchises,” said Hock Tan, president and CEO of Broadcom.

“In particular, we are uniquely positioned in mission critical infrastructure software and enabling hyperscalers to drive innovation in generative AI into their expanding subscriber platforms.”

Broadcom said the repurchase authorization also reflects board’s confidence in the company’s strong cash flow generation.

Last quarter, Broadcom generated $6.11 billion in cash from operations and $6.01 billion in free cash flow as AI revenue jumped 77% year-over-year. The company ended the first quarter with approximately $9.31 billion in cash and cash equivalents.

Broadcom noted that it may repurchase shares in the open market or make privately negotiated purchases under the new buyback program. The company is not obligated to repurchase any shares under the repurchase authorization. The buyback is set to expire on Dec. 31, 2025.

AVGO Price Action: Broadcom shares are down about 33% year-to-date. The semiconductor stock was up 2.65% after hours, trading at $158.22 at the time of publication Monday, according to Benzinga Pro.

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