Broadcom reported strong second fiscal quarter results on Wednesday, June 12, which were higher than expected. Moreover, it announced a stock split of 10-for-1 that will be effective in July.

Sales Projection for Fiscal Year 2024 Raised

For the quarter ending in May, Broadcom's earnings per share reached $10.96 after adjustments. This is a little higher than the LSEG consensus estimate of $10.84, as reported by CNBC. The revenue was $12.49 billion, which is higher than the anticipated $12.03 billion.

The chip manufacturer is raising its sales projection for the fiscal year 2024 from $50.42 billion to $51 billion, which is up from the prior projection and slightly over the consensus estimate.

Broadcom's net income for the quarter came to $2.12 billion ($4.42 per share) compared to $3.48 billion ($8.15 per share) for the same time last year.

READ NEXT: Broadcom Expects $10 Billion in AI Chip Sales in 2024

Broadcom Benefiting From AI Boom

One chipmaker reaping the benefits of the artificial intelligence (AI) boom is Broadcom, whose products are compatible with the AI apps that have captivated the tech world, such as OpenAI's ChatGPT. Even Google's own AI processor, the TPU, is also co-designed with Broadcom.

According to Broadcom, AI products contributed $3.1 billion to the company's quarterly revenues.

During the results call, CEO Hock Tan said that their hyperscale clients are spending more money to make these clusters work faster. "And to that end, we have just been awarded the next-generation custom AI accelerators for these hyperscale customers of ours," he added.

The business also attributed its sales increase and outlook for the remainder of the year to revenue from VMware, an enterprise software firm it purchased for $69 billion at the end of last year.

During the quarter, the company's total sales increased by 43% year over year. If not for VMware, Broadcom claims that sales would have increased by 12% year over year.

Broadcom to Divide Shares 10:1

After almost tripling in 2023, Broadcom stock has rallied more than 30% so far this year. To make its shares more accessible for regular investors, the company plans to carry out a 10-for-1 forward stock split, according to Reuters.

It is anticipated that the split-adjusted trading will commence on July 15.

READ MORE: Dell Cuts Its Workforce as Part of Broader Initiative to Reduce Costs After Sluggish Demand in PC Market