Broadcom shares reached a new high following better-than-expected financial results and a 10-for-1 stock split. The company’s revenue in the quarter ended May 5 was $12.49 billion, up 43% from the previous year. Adjusted profit per share was above expectations. Shares rose 14% on Thursday morning.
The company attributed its strong performance to demand for AI-related chips and its acquisition of VMware. Revenue in the software segment exceeded Wall Street estimates, while semiconductor revenue was in line with expectations. Revenue from artificial intelligence products saw a significant increase.
Networking revenue also saw growth, driven by enterprises adopting VMware software. Adjusted EBITDA was up 59% from the previous year. Broadcom raised its full-year outlook, with revenue forecasted at $51 billion for the fiscal year ending November 2024.
In a conference call, CEO Hock Tan mentioned expectations of a 40% increase in networking segment revenue for the full fiscal year. The company also anticipates growth in its wireless chip business, as well as declines in storage-related and broadband-related revenue.
A double-digit decline in industrial chip revenue is now expected. The stock split will take effect on July 15, further boosting investor enthusiasm.
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