Broadcom Inc ( AVGO ) shares are trading higher Tuesday after the company authorized a $10 billion share repurchase program.

What Happened: Broadcom’s board authorized a new buyback program, allowing the company to repurchase up to $10 billion of its common stock by Dec. 31, 2025.

Broadcom ( AVGO ) said the repurchase authorization reflects the board's confidence in the company's diversified businesses and strong cash flow generation.

"Today's announcement of a $10 billion share repurchase program reflects the Board's confidence in the strength of Broadcom's ( AVGO ) diversified semiconductor and infrastructure software product franchises," said Hock Tan, president and CEO of Broadcom ( AVGO ).

"In particular, we are uniquely positioned in mission critical infrastructure software and enabling hyperscalers to drive innovation in generative AI into their expanding subscriber platforms."

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Broadcom ( AVGO ) noted that it may repurchase shares in the open market or make privately negotiated purchases under the new buyback program, but the company is not obligated to repurchase any shares.

AVGO Price Action: Broadcom ( AVGO ) shares were up 8.38% at $166.77 at the time of publication Tuesday, according to Benzinga Pro.