Broadcom's official financial reports and press releases

Broadcom Hits $1 Trillion Valuation on AI Chip Demand, Forecasting $60-90B Revenue from Hyperscalers

Dec 13, 2024, 01:21 PM

Broadcom Inc. has joined the elite group of companies with a market capitalization exceeding $1 trillion, driven by a significant surge in demand for its artificial intelligence (AI) chips. The company reported a 220% year-on-year increase in AI revenue for fiscal year 2024, reaching $12.2 billion, fueled by its AI XPUs and Ethernet networking portfolio. Broadcom's shares soared more than 20% following the announcement, marking its largest share-price rally in over four years. CEO Hock Tan revealed that the company is collaborating with three major cloud providers to develop custom AI chips, projecting a potential revenue of $60 billion to $90 billion by fiscal year 2027 from these partnerships. The company's semiconductor solutions group, which includes AI chips, saw a 12% revenue increase to $8.23 billion in the fourth quarter, while its infrastructure software business, bolstered by the acquisition of VMware, reported $5.82 billion in sales. Broadcom's total revenue for the fiscal year was $51.57 billion, a 44% increase from the previous year, although net income decreased due to acquisition-related costs. The company also announced an 11% increase in its quarterly dividend to 59 cents per share for fiscal year 2025.