Broadcom beat estimates on earnings and revenue last quarter, driven by a surge in artificial intelligence semiconductor sales.
Revenue was up 28% year-over-year to a record US$18,02 billion, above LSEG estimates of $17.49 billion. Earnings per share rose 37% to $1.95, passing estimates of $1.86.
“We see the momentum continuing in Q1 and expect AI semiconductor revenue to double year-over-year to $8.2 billion, driven by custom AI accelerators and Ethernet AI switches,” said Broadcom CEO Hock Tan.
Its AI semiconductor revenue increased by 74% year-over-year, according to Tan. The semiconductor solutions segment, which represents 61% of Broadcom’s revenue, saw revenue rise 35% to $11.07 billion.
Broadcom’s infrastructure software revenue was up 19% to $6.94 billion.
Its GAAP net income grew by 97% to $8.52 billion. Adjusted EBITDA increased 34% to $12.22 billion.
The company’s operating income was $7.51 billion, up from $5.89 billion last year. Operating expenses declined to $4.74 billion from $4.82 billion, due to a slight decrease in research and development spending.
Next quarter, the company projects revenue of $19.1 billion, beating average analyst estimates of $18.3 billion. It expects adjusted EBITDA to be 67% of its revenue.
Broadcom’s (NASDAQ: AVGO) share price is up 75.2% across 2025 to date.
Share prices closed 1.6% lower at $406.37, before dropping 5% to $386.10 in after-hours trade. Broadcom’s market capitalisation is $1.92 trillion.
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