By Nauman Khan
Publication Date: 2025-12-12 15:11:00
This article first appeared on GuruFocus.
Broadcom (NASDAQ:AVGO) shares fell about 5% on early Friday trade, following a day after the company reported fourth-quarter fiscal 2025 results, which came ahead of analysts’ expectations and issued guidance for the first quarter of fiscal 2026.
The chipmaker posted record quarterly revenue of $18.0 billion, up 28% from a year earlier, led by a 74% jump in AI semiconductor revenue. GAAP net income rose to $8.52 billion, while non-GAAP net income reached $9.71 billion. Adjusted EBITDA was $12.22 billion, or 68% of revenue.
CEO Hock Tan said Broadcom expects AI semiconductor revenue to double year-over-year to $8.2 billion in the first quarter, driven by custom AI accelerators and Ethernet AI switches. However, executives noted that margins may decline due to the higher mix of AI-related sales.
The company generated $7.47 billion in free cash flow and raised its quarterly dividend 10% to $0.65 per share. Broadcom ended the…
