Broadcom CEO Hock Tan.
Lucas Jackson | Reuters
Broadcom It reported better-than-expected fourth-quarter earnings on Thursday and said artificial intelligence revenue has more than tripled this year. The chipmaker’s shares were higher in after-hours trading.
Here’s how Broadcom’s performance for the quarter ended November 3 compared to LSEG’s consensus estimates:
- Earnings per share: Adjusted $1.42, expected $1.38
- income: US$14.05 billion, expected US$14.09 billion
Broadcom said it expected first-quarter revenue of about $14.6 billion, slightly higher than analysts’ average estimate of $14.57 billion. Fourth-quarter revenue increased 51% year over year to $9.3 billion.
Fourth-quarter net income was $4.32 billion, or 90 cents per share, an increase of 23% from $3.52 billion, or 83 cents per share, in the same period last year.
In the semiconductor solutions unit, which includes the company’s artificial intelligence chips, revenue grew 12% to $8.23 billion from $8.03 billion a year ago.
Broadcom is seeing a surge in demand as a result of the boom in generative AI infrastructure. The company said its artificial intelligence revenue grew 220% this year to $12.2 billion. Some of that growth comes from Ethernet components, which are used to connect thousands of artificial intelligence chips together.
Broadcom said its infrastructure software unit had revenue of $5.82 billion in the quarter, nearly double the $1.96 billion in the same period last year. That included a boost from the $69 billion acquisition of VMware, which completely after the same period last year.
Broadcom said it will increase its quarterly dividend by 11% to 59 cents per share in fiscal 2025.
