Broadcom has approved a $10 billion share repurchase authorization.
Takeaway Points
- Broadcom has approved $10 billion to repurchase shares.
- The reacquiring under the new share repurchase program can be made through different methods.
- The share repurchase program may close or be suspended at any time.
- On March 6, 2025, Broadcom reported Q1 FY2025 results and declared a quarterly dividend.
$10B Share Repurchase Program
Broadcom Inc., a global technology leader that designs, develops, and supplies semiconductor and infrastructure software solutions, on Monday announced that its Board of Directors has authorized a new share repurchase program to repurchase up to $10 billion of its common stock through Dec 31, 2025.
Hock Tan, President and CEO of Broadcom Inc., said, “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. 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.”
Hock Tan, President and CEO of Broadcom Inc., commented, “The new share repurchase program reflects the Board’s confidence in our strong cash flow generation and allows us to deliver value to our stockholders.”
The Repurchases
According to the company, reacquiring under the new share repurchase program can be made through different methods, including open market or privately negotiated purchases. The timing and amount of shares reacquired will depend on the stock price, business and market conditions, corporate and regulatory requirements, alternative investment opportunities, acquisition opportunities, and other factors.
Broadcom said that it is not obligated to repurchase any particular amount of shares of common stock, and the share repurchase program may close or be suspended at any time.
Broadcom Reports Q1 FY2025 Results, Declares Quarterly Dividend
On March 6, 2025, Broadcom Inc., reported its financial results for its first quarter of fiscal year 2025, ended Feb 2, 2025, provided guidance for its second quarter of fiscal year 2025, and announced its quarterly dividend.
Hock Tan, President and CEO of Broadcom Inc., said, “Broadcom’s record first quarter revenue and adjusted EBITDA were driven by both AI semiconductor solutions and infrastructure software. Q1 AI revenue grew 77% year-over-year to $4.1 billion and infrastructure software revenue grew 47% year-over-year to $6.7 billion. We expect continued strength in AI semiconductor revenue of $4.4 billion in Q2, as hyperscale partners continue to invest in AI XPUs and connectivity solutions for AI data centers.”
According to the report, the company generated $6,113 million in cash from operations and spent $100 million on capital expenditures during the first fiscal quarter and paid $2,036 million of withholding taxes related to net settled equity awards that vested in the quarter (resulting in the elimination of 8.7 million shares).
About Broadcom
Broadcom Inc. (NASDAQ: AVGO) is a global technology leader that designs, develops, and supplies a broad range of semiconductor, enterprise software, and security solutions. Broadcom’s category-leading product portfolio serves critical markets, including cloud, data center, networking, broadband, wireless, storage, industrial, and enterprise software.
Their solutions include service provider and enterprise networking and storage, mobile device and broadband connectivity, mainframe, cybersecurity, and private and hybrid cloud infrastructure. Broadcom is a Delaware corporation headquartered in Palo Alto, CA.
