Broadcom (NASDAQ: AVGO) shares hit record highs after news of revenue growth in the second quarter and an announced stock split. Broadcom’s stock price has more than doubled over the past year. The company also announced a 10-for-1 stock split and a quarterly dividend of $5.25. The stock is expected to start trading on a split-adjusted basis on July 15.

In the second quarter of fiscal 2024 (ended May 5), Broadcom’s revenue grew 43% year over year to $12.5 billion. AI revenue increased by 280% to $3.1 billion, and infrastructure software revenue rose by 175% to $5.3 billion, thanks to the inclusion of VMware. However, server storage and broadband revenue fell by 27% and 39%, respectively.

Despite successes in AI and software-related segments, Broadcom shares seem expensive. The forward P/E ratio is over 38, which is high for a company with organic revenue growth of 12%. Although Broadcom has potential in the AI sector, many analysts believe Nvidia’s faster-growing, debt-free shares are a more attractive choice.