Broadcom Inc. (NASDAQ: AVGO) has announced its Board of Directors has authorised the repurchase of up to US$10 billion of its common stock under a new share repurchase program.

The global technology provider that designs, develops and supplies semiconductor and infrastructure software solutions, said the authorisation is effective until December 31, 2022.

Kirsten Spears, CFO of Broadcom Inc, said: “The initiation of a new share repurchase program reflects the confidence of the Board of Directors in Broadcom’s strong cash flow generation and provides us with a complementary tool to deliver value to our stockholders.”

The repurchase authorisation news led to one of Broadcom’s best market days in the past five year, with stock railing 7.54% to $627.42.

In the past 12 months, Broadcom’s shares have increased 53.11% in value, delivering a positive investment to shareholders. The company’s market cap has now reached $258.34 billion.

Broadcom has also this week announced its full-year results for 2021 with revenues hitting $27.45 billion, up from 2020’s $23.89 billion.

Net income has grown considerably from last year’s $2.96 billion to $6.74 billion in 2021.

CFO Spears said: “In fiscal 2021, we achieved record adjusted EBITDA margin of 60%, generating $13.3 billion of free cash flow, or 49% of revenue.

“Consistent with our commitment to return excess cash to shareholders, we are increasing our target quarterly common stock dividend by 14 percent to $4.10 per share per quarter for fiscal year 2022, and announcing a new $10 billion share repurchase program.”

The company has released its Q1 2022 business outlook guidance where it expects to reach revenues of $7.6 billion and an Adjusted EBITDA of approximately 61.5 percent of projected revenue.

Hock Tan, President and CEO of Broadcom, said: “Broadcom concluded the year with record fourth-quarter results driven by a rebound in enterprise, and continued strength from cloud and service provider demand. Our infrastructure software growth continues to be steady with our focus on strategic customers.

“With the strength and breadth of our IP portfolio, we continue to be able to uniquely deliver leading-edge, best-in-class semiconductor solutions, and extend our leadership in our franchise markets.”

Reach João Marques Lima at joao.lima@thetechcapital.com