Broadcom Inc. (NASDAQ: AVGO) shares jumped over 14% in after-hours trading on Thursday (Friday AEDT), after the semiconductor manufacturer posted its fourth quarter and fiscal year 2024 results.
The company reported fourth quarter net revenue of $14.05 billion, up 51% compared to the same time last year, but just shy of estimates of $14.08 billion.
However, it posted an adjusted earnings beat at $1.42 per share, above estimates of $1.39 per share, for its fiscal fourth quarter.
The AI-chip company said fiscal year 2024 revenue growth was 44% higher year-over-year, to a record US$51.6 billion (A$81 billion), with infrastructure software revenue growing to $21.5 billion, driven by the successful integration of VMware.
The company said semiconductor revenue also hit a record $30.1 billion, buoyed by AI revenue of $12.2 billion.
AI revenue surged 220% year-on-year, off the back of the company’s AI XPUs and Ethernet networking portfolio.
"In fiscal year 2024 adjusted EBITDA increased 37% year-over-year to a record $31.9 billion, and free cash flow excluding restructuring was strong at $21.9 billion," said Kirsten Spears, CFO of Broadcom Inc.
"Based on increased cash flows in fiscal year 2024, we are increasing our quarterly common stock dividend by 11% to $0.59 per share for fiscal year 2025. The target fiscal year 2025 annual common stock dividend of $2.36 per share is a record, and the fourteenth consecutive increase in annual dividends since we initiated dividends in fiscal 2011," she added.
The chipmaker said its expecting first quarter 2025 revenue guidance of around $14.6 billion, a 22% increase from the prior year period, and first quarter adjusted EBITDA guidance of circa 66% of projected revenue.
The company declared a quarterly cash dividend of $0.59 per share, up 11% on the prior quarter.
Broadcom has reportedly partnered with iPhone maker Apple to create a new AI chip for the tech giant.
Broadcom Inc. (NASDAQ: AVGO) designs, develops and supplies semiconductor and infrastructure software solutions and closed at $180.66, down 1.4% on Thursday and is 14.1% higher in aftermarket trading.
