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.
Shares of the chipmaker rose more than 9% in after-hours trading after Broadcom Chief Executive Hock Tan said the company was developing customized artificial intelligence chips with three separate large cloud customers.
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 artificial intelligence 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.
“We see opportunities in artificial intelligence over the next three years,” Broadcom CEO Hock Tan told investors on an earnings call. “Large-scale, specific hyperscale companies have begun their own journeys to develop their own customized artificial intelligence.” Smart Accelerator.”
Tan said that Broadcom is currently developing AI chips with three very large customers, and he expects that by 2027, each customer will deploy 1 million customized AI chips in clusters. ), the total market opportunity for artificial intelligence network components could be as high as $90 billion by 2027.
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.
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