Broadcom CEO Hock Tan Rejects Intel Acquisition Rumors

On Thursday, Broadcom Inc. (AVGO) CEO Hock Tan addressed speculation surrounding a possible merger with Intel Corp. (INTC). During Broadcom's first-quarter earnings call, he was asked by analyst Vijay Rakesh about merger and acquisition opportunities, especially in light of recent rumors related to a potential split at Intel.

In his response, Tan firmly stated that Broadcom is focused on its current projects and has no plans for acquisitions. "M&A, no, I'm too busy—we're too busy doing AI and VMware at this point," he said, emphasizing that the company is concentrating on other priorities.

Tan's remarks come amidst continuous conversations in the industry, where Broadcom seems to be exploring Intel's chip design and marketing sectors. Additionally, rumors suggest that Taiwan Semiconductor Manufacturing Co. (TSMC) may consider acquiring some or all of Intel's chip manufacturing facilities.

Broadcom's Financial Performance: In its first-quarter results, Broadcom reported revenue of $14.92 billion, which surpassed analyst expectations of $14.61 billion. Furthermore, the company reported adjusted earnings of $1.60 per share, exceeding the forecast of $1.49 per share.

Following this positive earnings report, Broadcom's shares experienced a notable increase of nearly 13% in after-hours trading, recovering from earlier declines observed during regular trading hours.

The boost in performance, especially in artificial intelligence, has strengthened investor confidence, a sentiment echoed by market analysts including Gary Black and Jim Cramer.

Stock Movement: On Thursday, Broadcom’s stock closed at $179.45, registering a 6.33% decline. However, it made a strong comeback in after-hours trading, rising by 12.82%. Year-to-date performance remains a concern as the stock has fallen by 22.64%, according to data from Benzinga Pro.

In conclusion, while there are ongoing discussions in the industry regarding mergers and acquisitions, Tan's current focus remains on expanding Broadcom's existing capabilities rather than pursuing new ventures.

Broadcom, Intel, M&A