Broadcom Inc. Announces $10 Billion Share Repurchase Authorization

Rhea-AI Summary

Broadcom Inc. (Nasdaq: AVGO) has announced a new $10 billion share repurchase program authorized by its Board of Directors, extending through December 31, 2025. The program demonstrates the Board's confidence in Broadcom's strong cash flow generation and its position in mission-critical infrastructure software, particularly in enabling hyperscalers for generative AI innovation.

The company maintains flexibility in executing the buyback through various methods, including open market or privately negotiated purchases. The actual timing and volume of repurchases will be determined by factors including stock price, market conditions, regulatory requirements, and alternative investment opportunities. Broadcom retains the right to suspend or terminate the program at any time.

Positive

• $10 billion share repurchase program demonstrates strong cash flow generation
• Strategic position in mission-critical infrastructure software and generative AI
• Program indicates Board's confidence in company's financial strength
• Flexible implementation allows optimization of purchase timing and value

Negative

• Large capital allocation to buybacks may limit funds for other strategic investments
• No guarantee of complete program execution as it's subject to market conditions

PALO ALTO, Calif., April 7, 2025 /PRNewswire/ -- Broadcom Inc. (Nasdaq: AVGO), a global technology leader that designs, develops and supplies semiconductor and infrastructure software solutions, today announced that its Board of Directors has authorized a new share repurchase program to repurchase up to $10 billion of its common stock through December 31, 2025.

"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," said Hock Tan, President and CEO of Broadcom Inc.

"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," said Kirsten Spears, CFO of Broadcom Inc.

Repurchases under the new share repurchase program may be made through a variety of methods, including open market or privately negotiated purchases. The timing and amount of shares repurchased will depend on the stock price, business and market conditions, corporate and regulatory requirements, alternative investment opportunities, acquisition opportunities and other factors. Broadcom is not obligated to repurchase any specific amount of shares of common stock, and the share repurchase program may be suspended or terminated at any time.

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. Our 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. For more information, go to www.broadcom.com.

Cautionary Note Regarding Forward-Looking Statements

This announcement contains forward-looking statements (including within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended, and Section 27A of the United States Securities Act of 1933, as amended) concerning Broadcom's business, products, and plans and expectations with regard to its share repurchase program. These forward-looking statements are based on current expectations and beliefs of Broadcom's management, current information available to Broadcom's management, and current market trends and market conditions and involve risks and uncertainties that may cause actual results to differ materially from those contained in forward-looking statements. Accordingly, undue reliance should not be placed on such statements.

Our filings with the SEC, which are available without charge at the SEC's website at https://www.sec.gov, discuss some of the important risk factors that may affect our business, results of operations and financial condition. Actual results may vary from the estimates provided. We undertake no intent or obligation to publicly update or revise the forward-looking statements made in this announcement, whether as a result of new information, future events or otherwise, except as required by law.

Contact:
Ji Yoo
Broadcom Inc.
Investor Relations
650-427-6000
investor.relations@broadcom.com 

(AVGO-Q)

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SOURCE Broadcom Inc.

FAQ

How much is Broadcom's (AVGO) new share repurchase program worth and when does it expire?

Broadcom's new share repurchase program is worth $10 billion and extends through December 31, 2025.

What methods will Broadcom (AVGO) use to execute its share repurchase program?

Broadcom can execute the repurchase through various methods, including open market purchases or privately negotiated transactions.

What factors will determine the timing and amount of AVGO's share repurchases?

Stock price, business and market conditions, regulatory requirements, alternative investment opportunities, and acquisition opportunities will determine the timing and amount of repurchases.

Is Broadcom (AVGO) obligated to complete the full $10 billion share repurchase?

No, Broadcom is not obligated to repurchase any specific amount and can suspend or terminate the program at any time.