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Stock surge of Broadcom due to solid earnings report today

Despite their high profits and abundant cash flow, Broadcom's stocks remain overpriced.

Increase in Broadcom's Share Price Ascribed to Today's Earnings Report
Increase in Broadcom's Share Price Ascribed to Today's Earnings Report

Stock surge of Broadcom due to solid earnings report today

In an exciting development, The Motley Fool Stock Advisor has unveiled its latest top 10 list of growth stocks. This investing community, designed for individual investors by individual investors, offers valuable insights for those looking to grow their portfolios.

One of the standout stocks on this list is Broadcom, a leading company in the semiconductor industry. Over the years, Broadcom has demonstrated impressive growth, and its inclusion in the "Ten Titans" list is a testament to this.

Let's take a closer look at Broadcom's Q3 earnings. The company reported a net income of $4.1 billion, with adjusted earnings per share of $1.69. Broadcom's revenue surged 22% year over year, reaching $16 billion. The company's free cash flow for the quarter was a robust $7 billion.

Broadcom's gross margin stands at 63.13%, while its dividend yield is 0.69%. As of the time of writing, Broadcom's stock is trading at $334.21, with a market cap of $1.6 trillion.

One of the most significant factors driving Broadcom's growth is its focus on artificial intelligence. In Q3, Broadcom's artificial intelligence revenue grew an impressive 63% year over year.

Looking at Broadcom's stock performance, it increased by 10.7% through 10:20 a.m. ET on Friday. However, it's important to note that the text does not provide any new information about Broadcom's stock price, earnings, revenue, or other financial metrics beyond the Q3 results.

The Motley Fool Stock Advisor's top 10 list also includes other tech giants such as Nvidia, Microsoft, Apple, Alphabet, Amazon, Meta Platforms, Tesla, Oracle, Netflix, and Broadcom. While Broadcom is indeed among the top 10 stocks recommended for purchase right now, it's worth noting that it was not included in the list of the 10 best stocks to buy now.

Investors who had the foresight to invest $1,000 in Netflix when it was recommended by The Motley Fool Stock Advisor on December 17, 2004, would have accumulated a staggering $678,148 as of September 5, 2025. Similarly, an investment of $1,000 in Nvidia, recommended on April 15, 2005, would have grown to $1,052,193 over the same period.

It's fascinating to see how these investments have evolved over time, demonstrating the potential of long-term growth strategies. The Motley Fool Stock Advisor's total average return of 1,065% is a market-crushing outperformance compared to 186% for the S&P 500.

However, it's crucial to remember that past performance is not a guarantee of future results. Investors should always conduct their own research and consider their risk tolerance before making investment decisions.

The 52-week range for Broadcom's stock is $134.90 - $356.34, providing a clear picture of its price fluctuations over the past year.

In conclusion, Broadcom's Q3 earnings showcase the company's continued growth in the semiconductor industry, particularly in the area of artificial intelligence. As part of The Motley Fool Stock Advisor's top 10 list, Broadcom offers an exciting opportunity for investors seeking long-term growth.

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