Broadcom reported fiscal second-quarter results with total revenue of $22.19 billion. The number was below analysts’ estimates, which projected US$22.27 billion. The company reported adjusted earnings per share of $2.44, above the $2.40 expected.
The company’s shares fell in extended trading after the release of the numbers. The infrastructure software segment performed below market projections.
Resultados exceeds in profit but loses in total revenue
Broadcom saw revenue grow 48% compared to the same period last year, when it totaled US$15 billion. The boost came mainly from the semiconductor division. However, the consolidated result did not reach the Wall Street consensus.
Net income reached US$9.31 billion, or US$1.91 per share. The previous year, the value was US$4.97 billion, or US$1.03 per share. Adjusted numbers exclude share-based compensation and tax adjustments.
- Receita of semiconductor solutions: US$15.1 billion
- Infrastructure software Receita: $7.18 billion
- AI Receita: $10.8 billion, more than double the previous year
The software division, boosted by the VMware acquisition in 2023, grew 9% year over year. Analistas expected US$7.32 billion, but the result was US$7.18 billion.
Demanda by AI chips sustains growth
Broadcom provides custom chips and technologies to large technology companies. Gigantes like Google, Meta, Microsoft and Amazon develop their own AI chip designs with support from the company.
CEO Hock Tan attributed the good performance of the AI area to the customized chips and network components needed to connect them. AI revenue more than doubled in the quarter.
The company projects revenue of about $29.4 billion for the current quarter. Analistas of Wall Street estimated $28.53 billion. The guidance for AI reaches US$16 billion, tripling the previous value.
Ações accumulates strong increase in the year
Broadcom shares were up about 40% from the start of the year through Wednesday’s close. The performance surpasses Nasdaq’s 16% gain over the same period. Desde the end of 2022, when ChatGPT drove the generative AI boom, shares multiplied almost nine times.
Investidores closely follows the company’s growth rate in the artificial intelligence sector. Broadcom benefits from the hyperscalers race for its own computing power.
Perspectivas for upcoming quarters
The company hopes to maintain momentum in the semiconductor area. The division accounted for much of the recent revenue. WiFi chips, AI accelerators and network solutions are part of the portfolio.
The high guidance for the third quarter signals confidence in the continued demand for AI-related products. The company reinforces its position as a strategic supplier for large-scale projects.
Detalhes financial balance sheet
Broadcom reported solid numbers on several fronts, despite occasional frustration with the software. The 48% annual growth in total revenue reflects the accelerated expansion of the chip business.
Analistas note that the market was already pricing in strong AI performance. Mild frustration with infrastructure software drove the stock’s initial negative reaction.
- Adjusted Lucro per share: $2.44 (estimate $2.40)
- Receita total: US$22.19 billion (estimate US$22.27 billion)
- Crescimento annual revenue: 48%
- AI Receita in the quarter: $10.8 billion
The company continues to attract attention from investors seeking exposure to the artificial intelligence investment cycle.