Broadcom CEO Hock Tan Brushes Off Intel Acquisition Speculation: 'M&A, No, I'm Too Busy...'

On Thursday, Broadcom Inc. (NASDAQ:AVGO) CEO Hock Tan dismissed speculation about a potential merger and acquisition with Intel Corp. (NASDAQ:INTC).

What Happened: During Broadcom's first-quarter earnings call, analyst Vijay Rakesh asked Tan about potential M&A, referencing the Intel split rumors.

In response, Tan made it clear that acquisitions are not on the table for now. "M&A, no, I'm too busy—we're too busy doing AI and VMware at this point," he stated.

Tan's comments come amid reports that Broadcom is eyeing Intel's chip design and marketing business while Taiwan Semiconductor Manufacturing Co. (NYSE:TSM) is considering acquiring some or all of Intel's chip plants.

See Also: Broadcom Debuts VeloSky To Accelerate 5G And Satellite Adoption

Why It's Important: Broadcom posted a first-quarter revenue of $14.92 billion, surpassing analyst expectations of $14.61 billion. The semiconductor giant also reported adjusted earnings of $1.60 per share for the quarter, exceeding the projected $1.49 per share.

Following the earnings announcement, Broadcom shares surged nearly 13% in after-hours trading, recovering from a previous decline during regular trading hours.

The strong performance in AI results has been a significant factor in boosting investor confidence, as noted by market analysts like Gary Black and Jim Cramer.

Price Action: Broadcom’s stock closed at $179.45 on Thursday, reflecting a 6.33% drop. However, it rebounded in after-hours trading, gaining 12.82%. Year to date, the stock has fallen by 22.64%, according to Benzinga Pro data.

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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.