The sign was posted in front of the Broadcom office in San Jose, California on December 12, 2024.
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Broadcom Reporting second quarter revenues on Thursday, beating Wall Street expectations, the chipmaker provided robust guidance for the current period.
Here’s how the chipmakers estimated the LSEG consensus:
Earnings per share: $1.58 Adjusted $1.56 Expected: $15 billion and $149.9 billion
Broadcom estimates third quarter revenues are approximately $15.8 billion, according to Wall Street analysts. Revenue for the most recent quarter has increased by 20% per year.
The company said its net income rose to $4.97 billion ($1.03 per share) from $2.12 billion in the same period last year, or 44 cents per share. The company enacted a 10-1 stock split a year ago.
Broadcom’s stock has risen 12% this year after more than doubled last year in investor optimism about the company’s custom chips for artificial intelligence. In March, Broadcom CEO Hock Tan said he was developing AI chips with three large cloud customers.
“We continue to advance in our multi-year journey of enabling three customers and four prospects to deploy custom AI accelerators,” Tan said, adding that the partners are “unwavering” with plans to invest in AI infrastructure.
Broadcom said its AI revenue was $4.4 billion over the quarter, giving sales to networking components connecting complex server clusters.
Tan said in a statement that Broadcom is expecting $5.1 billion in AI chip sales in the third quarter, adding that the company’s “hyperscale partners will continue to invest.” Tan said he hopes the company’s AI growth will continue throughout 2026.
HyperScalers is a company that builds large-scale cloud systems and rents them to their own customers. Includes Amazon, Google and Microsoft.
These sales are reported by the company’s Semiconductor Solutions Business, with analyst estimates of $8.4 billion in revenue from last year, up 17% from last year, and more than $8.34 billion.
The company’s software business, including VMware, rose 25% year-on-year to $6.6 billion, breaking StreetAccount estimates.
