By Adam Clark

A stock buyback program of up to $10 billion appears to be helping shares of Broadcom trim some of their recent losses, potentially offering an example for the rest of the market.

Broadcom said late on Monday that it would launch a share buyback program until the end of the year and that the amount of shares repurchased will depend on a number of factors, including market conditions and acquisition opportunities.

The stock was up 5.3% at $162.32 in premarket trading. That meant it was outperforming peers such as Marvell Technology and Nvidia which were up more than 4% amid a broader market rebound. Broadcom has fallen 34% this year so far through to Monday's close.

"The new share repurchase program reflects the board's confidence in our strong cash flow generation and allows us to deliver value to our stockholders," said Kirsten Spears, Broadcom's chief financial officer, in a statement.

Other companies could follow suit. As Barron's has noted, Big Tech companies have prioritized spending on artificial-intelligence capabilities recently. When that wave of investment begins to slow, it could be replaced by buybacks.

S&P 500 companies spent $243.2 billion on repurchasing their shares in the fourth quarter of 2024, up 7.4% from the preceding quarter, according to S&P Dow Jones Indices. Apple was the single biggest contributor, buying back $26.5 billion worth of shares.

Write to Adam Clark at adam.clark@barrons.com

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April 08, 2025 09:24 ET (13:24 GMT)

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