Broadcom Shares Soar 16% as Earnings Top Estimates on Demand for Custom Ai Chips

Broadom reported First-Quarter Earnings On thuresday that topped analysts’ expectations, and the chipmaker offered strong guidance for the current quarter. The stock jumped 16% in extended trading.

Here’s how the company did Versus Lseg Consensus Estimates:

• Earnings per share: $ 1.60 adjusted vs. $ 1.49 Expected
• Revenue: $ 14.92 billion vs. $ 14.61 billion expected

Broadcom said it expects about $ 14.9 billion in second -Quarter Revenue, Higher Than the $ 14.76 billion Forecast by Wall Street Analysts. Revenue in the last quarter rose 25% from $ 11.96 billion a year earlier.

The company said income increases to $ 5.5 billion, or $ 1.14 per share, from $ 1.33 billion, or 28 cents per share, in the same period last year.

Broadcom’s Artificial Intelligence Business is at the Center of the company’s recent boom, which saw it its stock price more than double last year. The company is one of the primary data center infrastructure vendors for ai, working bot on google’s custom ai chips as well as providing essential components for networking third clips to Develop Advanced Ai Software.

Prior to the after-his pop, the stock was down about 23% so far in 2025, as investors rotate out of risk partly due Due to Concern About President Donald Trump’s Tarifs.

Broadcom said it recorded $ 4.1 billion in ai revionue during the first quality, which is 77% Higher on a year -over -over-yaar basis. Thos sales are reported as part of broadcom’s semiconductor solutions business, which grew 11% on an annual basis to $ 8.21 billion during the Quarter.

Broadcom Ceo Hock Tan Said in a Statement that the company expects “Continued strength in ai semiconductor revneue,” Reaching a projected $ 4.4 billion in the second Quarter.

In December, broadcom said it was development custom ai chips with three large cloud customers.

The other Major Part of Broadcom’s Revenue Comes from its infrastructure Software Division, which includes software from the company’s acquisition of vmware in the fourte fourth fourth fourth fourter of 223. 2023. 2023. It Saw $ 6.7 Billion in Software Sales during the Quarter, A 47% Increase on Annual Basis.

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