Broadcom Options Volume More Than Quadruples After AI-Fueled Earnings Beat: Options Chatter

“We believe AI revenues will continue to grow throughout the year,” driven by strong capital spending by cloud and hyperscalers, with focus on AI infrastructure build-outs, JPMorgan analysts including Harlan Sur wrote in a note yesterday.

They also cited the contribution to revenue growth from the continued ramp up of Google’s next-gen tensor processing unit (TPU) v6 3 nanometer AI accelerator application-specific integrated circuit (ASIC), the start of Meta Platforms’ 3 nanometer ASIC ramp, and the continued strong adoption of ethernet networking.

Broadcom said late Thursday that it sees revenue rising to about $14.9 billion in the fiscal second quarter ending on May 4, from the $12.48 billion it reported a year earlier. That outlook is higher than $14.59 billion expected by analysts, according to estimates compiled by Bloomberg.

For the three months that ended on Feb. 2, the company reported revenue climbing 25% to $14.92 billion as semiconductor solutions soared 55%, while infrastructure software surged 45%. The total revenue was better than the $14.61 billion expected by analysts, estimates showed.  Adjusted earnings rose 50 cents to $1.60 per share, beating estimates by 6.4%, according to Bloomberg data.  

The stock remains the top pick for JPMorgan analysts in the semiconductor sector, after the company “delivered solid January quarter results on better-than-expected revenues in AI semis.”