A sign is posted in front of a Broadcom office in San Jose, California, on Dec. 12, 2024.
Justin Sullivan | Getty Images
Broadcom reported second-quarter earnings on Thursday that beat Wall Street expectations, and the chipmaker provided robust guidance for the current period.
Here’s how the chipmaker did versus LSEG consensus estimates:
Earnings per share: $1.58 adjusted versus $1.56 expectedRevenue: $15 billion versus $14.99 billion expected
Broadcom said it expects about $15.8 billion in third-quarter revenue, versus $15.70 billion expected by Wall Street analysts. Revenue in the latest quarter rose 20% on an annual basis.
The company said net income increased to $4.97 billion, or $1.03 per share, from $2.12 billion, or 44 cents per share, in the year-ago period. The company instituted a 10-for-1 stock split a year ago.
Broadcom shares are up 12% this year after more than doubling last year on investor optimism for the company’s custom chips for artificial intelligence. In March, Broadcom CEO Hock Tan said it was developing AI chips with three large cloud customers.
Broadcom said that it had $4.4 billion in AI revenue during the quarter, attributing the sales to its networking parts that connect complicated server clusters.
Tan said in a statement that Broadcom expects $5.1 billion in AI chip sales in the third quarter, adding that the company’s “hyperscale partners continue to invest.”
Hyperscalers are companies that build out large cloud systems to rent out to their own customers. They include Amazon, Google and Microsoft.
Those sales are reported in the company’s semiconductor solutions business, which had $8.4 billion in revenue during the quarter, a 17% increase from last year, and above $8.34 billion analyst estimate, according to StreetAccount.
The company’s software business, which includes VMware, grew 25% year-over-year to $6.6 billion in sales, beating the StreetAccount estimate.
