Palo-Alto-based Broadcom has announced a new share buyback programme worth up to $10 billion, with the buyback period extending until December 2025.

The board of directors at the semiconductor and infrastructure software solutions company announced on Monday that it had authorised the programme, with the move reflecting the company's confidence in the strength of its diversified semiconductor and infrastructure software products and particularly on its artificial intelligence (AI) offering.

Broadcom’s product portfolio serves critical markets such as cloud, data centre, networking, broadband, wireless, storage, industrial and enterprise software.

The company's solutions include networking and storage for service providers and enterprises, mobile and broadband connectivity, mainframes, cybersecurity, and private and hybrid cloud infrastructure.

"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, chief financial officer, Broadcom.

The tech company’s president and chief executive Hock Tan added that the business is “uniquely positioned” in mission critical infrastructure software and enabling hyperscalers to drive innovation in generative AI into their expanding subscriber platforms.

Broadcom’s stock price rose three per cent in after-hours trading. According to stock market analysis platform Market Screener, the stock had gained 15 per cent in the past 12 months up to Monday's market close.

Repurchases under the new share buyback programme can be made by various methods, including open market purchases or privately negotiated, Broadcom said.

The company added that the timing and amount of shares repurchased will depend on the share price, business and market conditions, corporate and regulatory requirements, alternative investment opportunities, acquisition opportunities and other factors.

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