Broadcom’s Earnings Exceed Expectations on AI Revenue Growth

Broadcom (AVGO) reported fiscal fourth-quarter earnings that topped analysts’ expectations, sending shares increased in prolonged buying and selling Thursday. 

The chipmaker noticed fourth-quarter income develop 51% year-over-year to $14.05 billion, roughly consistent with the analyst consensus compiled by Visible Alpha. Net revenue got here in at $4.32 billion or 90 cents per share, up from $3.52 billion or 83 cents per share a 12 months earlier, beating expectations. Broadcom underwent a 10-for-1 inventory cut up in July.

The robust outcomes come after Broadcom posted a lack of $1.88 billion final quarter, due partially to elevated bills associated to its November 2023 acquisition of software program firm VMware. However, the combination helped increase Broadcom’s income to a file excessive for fiscal 2024.

“Broadcom’s fiscal 12 months 2024 income grew 44% year-over-year to a file $51.6 billion, as infrastructure software program income grew to $21.5 billion, on the profitable integration of VMware,” CEO Hock Tan mentioned in a launch.

Tan additionally famous Broadcom’s full-year income from synthetic intelligence (AI) greater than tripled to $12.2 billion, barely beating its earlier outlook of $12 billion.

Looking forward, Broadcom forecast fiscal first-quarter income of $14.6 billion, above analysts’ estimates.

Broadcom shares surged over 14% in prolonged buying and selling Thursday following the discharge. They have been up 62% for 2024 via Thursday’s shut.

CORRECTION & UPDATE—Dec. 12, 2024: This article has been up to date to replicate further data from Broadcom’s earnings report, the impression of its inventory cut up in July, and newer share value values.