April 7 (Reuters) – Broadcom (AVGO.O)
, opens new tab said on Monday it was launching a new share buyback program of up to $10 billion, set to run through the end of the year.
Shares of the chipmaker rose nearly 3% in extended trading.
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During buybacks, firms buy their own shares on the stock exchange, reducing the proportion of shares held by investors, offering a way for companies to return cash to shareholders.
CEO Hock Tan said the move reflects confidence in Broadcom’s semiconductor and infrastructure software franchises, particularly its position in artificial intelligence-related investments.
Reporting by Jaspreet Singh in Bengaluru; Editing by Shinjini Ganguli
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