Broadcom, a chipmaker, reported better-than-expected earnings per share of $10.96 and revenue of $12.49 billion compared to LSEG’s consensus estimates for the quarter ending in May. The company expects about $51 billion in sales during its fiscal 2024 year, slightly above consensus expectations. Broadcom’s net income during the quarter was $2.12 billion, or $4.42 per share, an increase from the same period a year ago.
The rise of artificial intelligence has been a significant factor in Broadcom’s success, with $3.1 billion in sales attributed to revenue from AI products. The company works with Google, which designs its own AI chip called TPU. Broadcom’s CEO, Hock Tan, mentioned on the earnings call that hyperscale customers are accelerating their investments to increase the performance of AI clusters, and the company has just taken delivery of next-generation custom AI accelerators for these customers.
Additionally, revenue from VMware, an enterprise software company acquired by Broadcom for $69 billion at the end of last year, contributed to its sales growth and forecast for the rest of the year. The company’s overall revenue increased 43% year over year during the quarter, with a 12% year-over-year increase without VMware sales.
It is worth noting that an earlier version incorrectly indicated the consensus estimate for revenue as $12.03 billion.
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