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2d ago

Broadcom Shares Tick Higher After Hours on New Lloyds Deal as AI Momentum Lifts Outlook

A fresh Lloyds Banking Group agreement extends Broadcom’s VMware-based software footprint, underscoring traction beyond its fast-growing AI hardware business.

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Overview

  • Broadcom announced a multi-year partnership with Lloyds Banking Group to expand use of its infrastructure software, including VMware Cloud Foundation and mainframe solutions.
  • Shares rose about 1% in after-hours trading to $350.70 after a 3.8% regular-session drop, leaving the stock below last week’s $374.23 record high.
  • The company posted third-quarter revenue of $15.95 billion with AI sales up 63% to $5.2 billion and guided fourth-quarter AI revenue to $6.2 billion.
  • Broadcom confirmed a $10 billion custom AI chip order from OpenAI as large technology companies increase spending on AI infrastructure.
  • Analysts boosted confidence in the story, with Susquehanna reiterating a Buy rating with a $400 target and Macquarie initiating at Outperform with a $420 target, even as some caution on the rich valuation.