A team of analysts from an important international bank explained why Trust Broadcom’s growth potentialone of the main chips manufacturers of the world that has Argentine deposit certificates (Yields) quoting on the local bag.
The company was included in the basket “Positive Roe Trend”an its own index in which there are signatures whose return on capital (ROE) can increase, either by a Improvement of margins or greater efficiency.
According to analysts of Citigroup it is increasingly difficult to find high quality companies that generate solid profitability. In fact, having a good roe, which is obtained from divide the net profit between accounting capitalIt is not normal among the big corporations, but Broadcom is the exception.
By the end of 2026, it is projected that Broadcom’s roe will be greater than 43% For the improvement in their profits, driven by the increase in income that, in turn, would be linked to the rise of artificial intelligence chips (AI).
In this context, the Broadcom CEO, Tan Hock Engsaid the company, valued in u $ s1.18 billion, it foresees that Expansion of your income for the fiscal year 2025 extends for 2026.
“We hope that the growth of revenue from IA semiconductors will accelerate au $ S5.1 billion in the third quarter, achieving ten consecutive growth quarters, while our hyperscale partners continue to invest,” he said in the presentation of balances of the second quarter.
Broadcom: A solid financial position
In that period, Broadcom registered an income record of US $ 15,000 million that jumped 20% per year. Meanwhile, His net gain shot 44% to US $ 787 million.
This good financial position is not only helping the price of its shares, which advance 38% in the last year, but also benefits investors because it allows a good dividend distribution policy and shares of shares.
“In line with our commitment to return excess cash to shareholders, we returned US $ 7,000 million in the second quarter through US $ 2,800 million in cash dividends YU $ S4.2 billion in shares of shares,” he said Kirsten SpearsBroadcom CFO.
Fortunately for Argentine investors, Broadcom can be easily bought by means of a local principal accountsince its yield They can operate day after day, both in pesos and in dollars.
Source: Ambito
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