Official announcements from Broadcom or major news outlets

Broadcom Beats Earnings, AI Revenue Surges with Custom Chips and VMware Boost

Dec 12, 2024, 09:24 PM

Broadcom Inc. reported its fiscal fourth-quarter earnings on December 12, 2024, with adjusted earnings per share of $1.42, surpassing Wall Street expectations of $1.38. The company's revenue reached $14.05 billion, slightly below the anticipated $14.09 billion. Broadcom's semiconductor solutions group saw a 12% increase in revenue to $8.23 billion, driven by demand for AI chips. The company highlighted a significant 220% year-over-year increase in AI revenue, reaching $12.2 billion for the fiscal year, fueled by the demand for custom AI chips from cloud giants. Broadcom is currently developing AI chips for three major hyperscale customers, with expectations of each deploying 1 million custom AI chips by 2027. The company's infrastructure software division, bolstered by the $69 billion acquisition of VMware, generated $5.82 billion in revenue, nearly tripling from last year. Broadcom's stock surged over 9% in after-hours trading following the earnings release. For the first quarter of fiscal 2025, Broadcom expects revenue of about $14.6 billion, just above the consensus estimate of $14.57 billion. The company also announced an 11% increase in its quarterly dividend to 59 cents per share.