Broadcom's AI Chip Business Skyrockets, Shareholder Returns Soar

0:00It's March 9th in Durham. Let's get into the news. Broadcom just reported one of its strongest quarters ever in the first quarter of fiscal 2026. Revenue hit a record 19.3 billion dollars, up 29% from last year. They also posted 13.1 billion dollars in adjusted EBITDA, giving them a stunning 68% margin. That's way above what most companies dream of. On top of that, the company returned 10.9 billion dollars to shareholders in just one quarter. That included $3.1 billion in cash dividends and $7.8 billion in share buybacks. Their annual dividend now stands at $2.60 per share, with more than 30% growth over the past decade. Dividend investors love this because the pay-out ratio is only about 25% of free cash flow. That leaves plenty of room for future raises. Five years ago, buyers are now enjoying a much higher yield on their original cost thanks

1:00to that steady growth. The real driver here is their AI chip business, which brought in $8.4 billion, up 106% year over year. The CEO guided for $10.7 billion in the next quarter, a 140% jump. They're building custom accelerators for big names, like Google and Meta, with deals locked in through 2028. Looking ahead, Broadcom expects second-quarter revenue around $22 billion, up 47%. Analysts are all in, with most rating it a buy-and-price targets suggesting 40% upside. This mix of AI growth, software margins, and shareholder returns makes it a solid pick for long-term holders. The Daily News Now is presented by our sponsor, linked in the description. Press play, put your head down. The sound is already there. S-O-L-I-SOLYPILLOW.COM.