Broadcom Reports Strong Earnings, Outperforms Expectations with AI Revenue Growth
Broadcom (AVGO) reported impressive earnings for the quarter despite a premarket stock decline. The company's revenue surged to $29.59 billion, up 86% year-over-year, while adjusted EPS jumped 96% to $3.32—both figures surpassing Wall Street expectations. This strong performance was driven by robust demand from hyperscalers for custom AI chips and networking equipment, with AI semiconductor revenue tripling to $16.7 billion. CEO Hock Tan highlighted a projected $350 billion in AI chip sales over the next two years to key customers like Meta (META) and Google (GOOG), signaling confidence in sustained demand. JPMorgan analyst Harlan Sur upgraded his earnings estimates for Broadcom, maintaining an Overweight rating on the stock. The upbeat outlook from Broadcom mirrors recent strong guidance from Dell (DELL) and Nvidia (NVDA). Both companies have exceeded expectations with their AI revenue forecasts, challenging bearish sentiment around peak AI growth.
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Topics: AI chips earnings report hyperscalers semiconductors