Broadcom CEO Hock Tan.
Lucas Jackson | Reuters
Broadcom reported first-quarter earnings on Thursday that topped analysts’ expectations, and the chipmaker supplied robust steerage for the present quarter. The inventory jumped 16% in prolonged buying and selling.
Here is how the corporate did versus LSEG consensus estimates:
- Earnings per share: $1.60 adjusted vs. $1.49 anticipated
- Income: $14.92 billion vs. $14.61 billion anticipated
Broadcom stated it expects about $14.9 billion in second-quarter income, larger than the $14.76 billion forecast by Wall Avenue analysts. Income within the final quarter rose 25% from $11.96 billion a yr earlier.
The corporate stated internet revenue elevated to $5.5 billion, or $1.14 per share, from $1.33 billion, or 28 cents per share, in the identical interval final yr.
Broadcom’s synthetic intelligence enterprise is on the middle of the corporate’s latest growth, which noticed its inventory value greater than double final yr. The corporate is among the main information middle infrastructure distributors for AI, working each on Google’s customized AI chips in addition to offering important parts for networking hundreds of different chips collectively to develop superior AI software program.
Previous to the after-hours pop, the inventory was down about 23% to date in 2025, as traders rotate out of threat partly as a consequence of concern about President Donald Trump’s tariffs.
Broadcom stated it recorded $4.1 billion in AI income in the course of the first quarter, which is 77% larger on a year-over-year foundation. These gross sales are reported as a part of Broadcom’s semiconductor options enterprise, which grew 11% on an annual foundation to $8.21 billion in the course of the quarter.
Broadcom CEO Hock Tan stated in an announcement that the corporate expects “continued power in AI semiconductor income,” reaching a projected $4.4 billion within the second quarter.
In December, Broadcom stated it was growing customized AI chips with three massive cloud clients. Tan stated on Thursday that along with these clients, the corporate had “deeply engaged” with two different hyperscalers, and is working with 4 different potential clients to develop their very own customized AI chips.
Tan stated that Broadcom intently chooses companions for growing customized AI chips who can deploy the ensuing product in massive portions.
“To place it bluntly, we do not do it for startups,” Tan stated.
The opposite main a part of Broadcom’s income comes from its infrastructure software program division, which incorporates software program from the corporate’s acquisition of VMware within the fourth fiscal quarter of 2023. Broadcom stated it noticed $6.7 billion in software program gross sales in the course of the quarter, a 47% improve on an annual foundation.
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