Broadcom CEO Hock Tan speaks at the Digital X event in Cologne, Germany on September 13, 2022.
Ying Tan | Null Photo | Getty Images
broadcom reported better-than-expected earnings and revenue and issued a strong outlook for the current fiscal year as the chipmaker continues to benefit from the artificial intelligence boom.
Here is the company’s performance compared to the LSEG consensus:
Earnings per share: $2.05 adjusted vs. $2.03 estimated Revenue: $19.31 billion vs. $19.18 billion estimated
Broadcom’s revenue increased 29% year-over-year during the fiscal first quarter that ended Feb. 1, according to a statement.
Net income was $7.35 billion, or $1.50 per share, up from $5.5 billion, or $1.14 per share, in the year-ago period. Adjusted earnings exclude stock-based compensation and tax adjustments.
Broadcom said it expects adjusted earnings before interest, taxes, depreciation and amortization to be 68% for its fiscal second quarter. The company said it expects fiscal second quarter sales of $22 billion. Analysts polled by LSEG expected sales of $20.56 billion.
Broadcom helps other companies convert their chip designs into silicon, providing intellectual property and back-end technology before the chips go to chip manufacturing plants from companies such as: Taiwan semiconductor manufacturing company. This role is growing in importance as Amazon, Google, Meta, and Microsoft design customized chips.
The company is benefiting from increased demand for artificial intelligence infrastructure, with AI revenue increasing 106% to $8.4 billion in the quarter.
CEO Hock Tan said in a statement that AI revenue more than doubled to $8.4 billion in the same period “driven by strong demand for custom AI accelerators and AI networking.” Tan had called for AI revenue to double in December. Broadcom is contributing to the development of Google’s tensor processing unit (TPU).
Tan said the company expects AI semiconductor sales to be $10.7 billion this quarter.
Broadcom reported revenue from semiconductor solutions of $12.52 billion, beating the $12.25 billion total from analysts surveyed by Street Account. During the quarter, Broadcom announced a new Wi-Fi 8 chip.
Regarding infrastructure software, Broadcom reported revenue of $6.8 billion, which was below the consensus of $7.02 billion from Street accounts.
Broadcom’s board of directors has authorized up to $10 billion in stock buybacks through 2026.
Tan said in December that Anthropic had ordered $10 billion worth of custom chips. Last week, Secretary of Defense Pete Hegseth said the Pentagon would call Anthropic a “supply chain risk to national security,” and President Donald Trump directed the agency to stop using Anthropic after the artificial intelligence startup refused permission to use the technology for domestic mass surveillance or fully autonomous weapons.
As of Wednesday’s close, Broadcom stock was down 8% so far in 2026, while the S&P 500 index was flat.
Executives will discuss the results in a conference call beginning at 5 p.m. ET.
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