According to FactSet data, Broadcom (AVGO.O) reported an adjusted earnings per share of $1.42 for the fourth quarter, exceeding Wall Street's expectation of $1.39. Revenue was $14.05 billion, roughly in line with analysts' expectation of $14.07 billion. Meanwhile, the company expects current quarter sales to be $14.6 billion, slightly higher than the analysts' expectation of $14.55 billion.
Broadcom CEO Hock Tan stated in a press release that the company's AI revenue for fiscal year 2024 grew by 220% year-over-year, primarily driven by Broadcom's leading AI XPU chips and Ethernet network product portfolio.
Driven by the earnings report, Broadcom's stock price rose by as much as 10% in after-hours trading.
The earnings report showed that the semiconductor solutions division generated revenue of $8.2 billion in the fourth quarter, while the infrastructure software division generated $5.8 billion.
In the subsequent analyst conference call, Hock Tan indicated that Broadcom's opportunities in the AI field over the next three years are 'huge.' He noted that the company currently has three hyperscale customers (referring to major cloud computing providers) and expects market opportunities in AI accelerators and networking to reach $60 billion to $90 billion by fiscal year 2027.
Broadcom's semiconductor business covers multiple fields, including networking, broadband, server storage, wireless, and industrial applications, with some chips involved in generative AI applications.
As of Thursday's close, Broadcom's stock price has risen 62% this year, far exceeding the 13% increase of the iShares Semiconductor Industry ETF.
Article reposted from: Jinshi Data