Broadcom’s Earnings Exceed Expectations on AI Revenue Growth

Broadcom (AVGO) reported fiscal fourth-quarter earnings that topped analysts’ expectations, sending shares higher in extended trading Thursday. 

The chipmaker saw fourth-quarter revenue grow 51% year-over-year to $14.05 billion, roughly in line with the analyst consensus compiled by Visible Alpha. Net income came in at $4.32 billion or 90 cents per share, up from $3.52 billion or 83 cents per share a year earlier, beating expectations. Broadcom underwent a 10-for-1 stock split in July.

The strong results come after Broadcom posted a loss of $1.88 billion last quarter, due in part to increased expenses related to its November 2023 acquisition of software company VMware. However, the integration helped boost Broadcom’s revenue to a record high for fiscal 2024.

“Broadcom’s fiscal year 2024 revenue grew 44% year-over-year to a record $51.6 billion, as infrastructure software revenue grew to $21.5 billion, on the successful integration of VMware,” CEO Hock Tan said in a release.

Tan also noted Broadcom’s full-year revenue from artificial intelligence (AI) more than tripled to $12.2 billion, slightly beating its previous outlook of $12 billion.

Looking ahead, Broadcom forecast fiscal first-quarter revenue of $14.6 billion, above analysts’ estimates.

Broadcom shares surged over 14% in extended trading Thursday following the release. They were up 62% for 2024 through Thursday’s close.

CORRECTION & UPDATE—Dec. 12, 2024: This article has been updated to reflect additional information from Broadcom’s earnings report, the impact of its stock split in July, and more recent share price values.