Why Broadcom Stock Is Up 6.7% in March

Stock price movements

Broadcom (AVGO) stock rose 1.35% and closed at $293.84 on March 18. Shares of the semiconductor giant have risen 6.7% this month as of March 18. AVGO also reached a new high of $299.55 in the March 15 session, mainly driven by its fiscal 2019 first-quarter earnings results for the period that ended on February 3, 2019, which it reported on March 14.

Broadcom stock has risen 15.6% YTD (year-to-date) compared to the S&P 500’s rise of 13% YTD as of March 18. The stocks of Broadcom’s semiconductor peers Qualcomm (QCOM), NVIDIA (NVDA), Micron (MU), Marvell Technology (MRVL), Intel (INTC), and Advanced Micro Devices (AMD) have risen 1%, 26.7%, 24.8%, 23.2%, 16.0%, 25.9%, respectively, YTD.

Why Broadcom Stock Is Up 6.7% in March

Broadcom posted mixed results in the first quarter

Broadcom came out with better-than-expected earnings in the first quarter, wherein its adjusted EPS of $5.55 exceeded analysts’ expectation of $5.23. Its EPS also rose 8.4% YoY (year-over-year) from $5.12.

At $5.79 billion, Broadcom’s revenue missed analysts’ estimate of $5.82 billion by 0.5%. Nevertheless, the chip maker posted revenue growth of 8.7% YoY in the quarter driven by its strong performance in the networking business and the Infrastructure Software segment offset by a drop in its wireless business.

Like its peers, the company’s performance was hurt by a slowdown in China, but optimism over the trade talks between the United States and China could give a boost to the semiconductor industry in the near term. Broadcom has maintained its fiscal 2019 guidance.