Broadcom Jumps on Q2 Earnings Beat: ETFs to Buy

13.06.24 17:59 Uhr

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Broadcom AVGO reported strong second-quarter fiscal 2024 results, topping both earnings and revenue estimates and offering an upbeat annual forecast driven by robust demand for artificial intelligence (AI) products. The chipmaker also announced a 10-for-1 stock split, which is set to begin trading on a split-adjusted basis on Jul 15.AVGO shares jumped as much as 14% in after-market trading and are up nearly 14% in the pre-market trade at the time of writing. Investors can tap the robust growth with the help of ETFs, having the largest allocation to this chipmaker. These are Amplify Cybersecurity ETF HACK, Pacer Data and Digital Revolution ETF TRFK, Invesco PHLX Semiconductor ETF SOXQ, iShares U.S. Tech Independence Focused ETF IETC and First Trust NASDAQ Technology Dividend Index Fund TDIV.Earnings in FocusEarnings per share came in at $10.96, easily surpassing the Zacks Consensus Estimate of $10.79 and rising 6.2% from the year-ago quarter. Revenues jumped 43% year over year to $12.5 billion and edged past the consensus mark of $12.04 billion.Broadcom is benefiting from the AI boom as its devices can run the different types of AI applications that have delighted the tech industry. Notably, Broadcom works with Google GOOGL, which partially designs its own AI chip called a TPU.For fiscal 2024, the chipmaker expects revenues of approximately $51.0 billion. This is higher than the Zacks Consensus Estimate of $50.54 billion.Like NVIDIA NVDA, Broadcom also announced a 10-to-1 stock split, effective Jul 15. The move will make the stock more accessible to investors and employees and attract individual investors who make small trades. This is because a stock split creates more shares of a company without changing the underlying dollar value of any single investor's holdings. By increasing the number of shares available, the company can attract new investors who might otherwise not be able to afford a single share at a high price (read: NVIDIA Overtakes Apple: ETFs to Tap the Incredible Growth Story).ETFs to TapLet’s delve into each ETF below:Amplify Cybersecurity ETF (HACK)Amplify Cybersecurity ETF is the first cybersecurity ETF that invests in companies within the growing cybersecurity industry. It tracks the Nasdaq ISE Cyber Security Select Index, holding 24 securities in its basket. Broadcom takes the top position with 11.1% of the assets.Amplify Cybersecurity ETF has amassed $1.6 billion in its asset base and charges 60 bps in fees per year. It trades in an average daily volume of 99,000 shares (read: Cybersecurity ETFs in Focus Amid Rising Cyber Threats).Pacer Data and Digital Revolution ETF (TRFK)Pacer Data and Digital Revolution ETF aims to offer investors exposure to globally listed stocks and depositary receipts of data and digital revolution companies. It follows the Pacer Data Transmission and Communication Revolution Index, holding 79 stocks in its basket. Broadcom takes the third spot, accounting for 10.3% of the assets.Pacer Data and Digital Revolution ETF has accumulated $31.2 million in its asset base and charges 60 bps in annual fees. It trades in an average daily volume of 12,000 shares.Invesco PHLX Semiconductor ETF (SOXQ)Invesco PHLX Semiconductor ETF offers exposure to the largest U.S.-listed securities of companies engaged in the semiconductor business. It tracks the PHLX Semiconductor Sector Index, holding 30 stocks in its basket. AVGO occupies the second position with a 9.8% share in the basket (read: Chip ETFs in Focus on New Generation AI Product Launches).Invesco PHLX Semiconductor ETF has accumulated $437.2 million in its asset base. It charges 19 bps in annual fees and trades in an average daily volume of 212,000 shares. Invesco PHLX Semiconductor ETF has a Zacks ETF Rank #1 (Strong Buy).iShares U.S. Tech Independence Focused ETF (IETC)iShares U.S. Tech Independence Focused ETF is an actively managed ETF providing exposure to U.S. companies with a greater proportion of technological capabilities, revenues, and production in the United States. It holds 151 stocks in its basket, with Broadcom occupying the third position with 9.8% of the assets.iShares U.S. Tech Independence Focused ETF has accumulated $262.5 million in its asset base and trades in a light volume of 27,000 shares. It charges 18 bps in annual fees.First Trust NASDAQ Technology Dividend Index Fund (TDIV)First Trust NASDAQ Technology Dividend Index Fund provides exposure to dividend payers in the technology sector by tracking the Nasdaq Technology Dividend Index. It holds about 87 securities in its basket. Of these firms, AVGO occupies the second position, making up 8.3% of the assets.First Trust NASDAQ Technology Dividend Index Fund has $2.5 billion in its asset base and trades in a moderate volume of about 79,000 shares per day. The ETF charges 50 bps in annual fees.Want key ETF info delivered straight to your inbox? Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.Get it free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NVIDIA Corporation (NVDA): Free Stock Analysis Report Broadcom Inc. (AVGO): Free Stock Analysis Report Alphabet Inc. (GOOGL): Free Stock Analysis Report Amplify Cybersecurity ETF (HACK): ETF Research Reports First Trust NASDAQ Technology Dividend ETF (TDIV): ETF Research Reports iShares U.S. Tech Independence Focused ETF (IETC): ETF Research Reports Invesco PHLX Semiconductor ETF (SOXQ): ETF Research Reports Pacer Data and Digital Revolution ETF (TRFK): ETF Research ReportsTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks

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