Broadcom (AVGO) 2024 third quarter financial report | Wilnesh News

Broadcom Fiscal third-quarter results reported Thursday beat Wall Street expectations for revenue and profit.

Broadcom shares fell 5% in after-hours trading.

Here’s how the chipmaking group and LSEG performed in consensus for the quarter ending August 4:

• Earnings per share: Adjusted $1.24, expected $1.20
• income: US$13.07 billion, expected US$12.97 billion

Broadcom forecast revenue of $14 billion for the quarter, compared with expectations of $1.36 per share and expectations of $14.04 billion.

Broadcom reported a net loss of $1.88 billion, or 40 cents a share, compared with a net profit of $6.12 billion, or $1.24 a share, a year earlier.

The company said its third-quarter net loss included a $4.5 billion one-time tax provision related to intellectual property transactions from one corporate division to another U.S.-based division as part of supply chain management.

Broadcom’s stock price has risen 75% in the past year as investors began to realize that the company makes a variety of parts needed for big data centers and may be used to create artificial intelligence infrastructure. For example, Broadcom uses Google’s TPU chips, which Apple uses to train some of its artificial intelligence functions.

Broadcom CEO Hock Tan said in a statement that the company expects sales of artificial intelligence parts and customized chips to reach $12 billion in fiscal 2024.

“Broadcom’s third-quarter results reflect the continued strength of our artificial intelligence semiconductor solutions and VMware,” Tan said in a statement. The company reported semiconductor sales of $7.27 billion in the quarter, up 5% year-over-year. It’s still larger than Broadcom’s infrastructure software unit, which has sales of $5.8 billion, much of it from the company’s acquisition of VMware.