Broadcom, a leading chipmaker, exceeded analyst expectations in its second fiscal quarter earnings report. In addition to this, the company announced a 10-for-1 stock split, scheduled to take effect on July 15th.
The company’s earnings per share were reported at $10.96, surpassing the expected $10.84. Revenue for the quarter reached $12.49 billion, higher than the anticipated $12.03 billion. Looking ahead, Broadcom is forecasting approximately $51 billion in sales for its fiscal year 2024, which is an increase from previous estimates and slightly above the consensus forecast of $50.42 billion.
During the quarter, Broadcom recorded a net income of $2.12 billion, or $4.42 per share, compared to $3.48 billion in net income, or $8.15 per share, in the same period last year. The company has been capitalizing on the growing demand for artificial intelligence (AI) technologies, with $3.1 billion in sales attributed to AI products. Working with tech giants like Google, Broadcom has been involved in developing AI chips such as the TPU.
CEO Hock Tan highlighted the company’s success in providing AI accelerators to hyperscale customers, noting the increasing investments in enhancing cluster performance. Additionally, revenue from VMware, an enterprise software firm acquired by Broadcom for $69 billion, contributed to the company’s sales growth and future outlook.
Broadcom’s overall revenue saw a 43% increase year-over-year, with VMware sales factored in. Excluding VMware, the revenue would have still risen by 12% compared to the previous year. The company’s performance underscores its strong position in the market and its strategic focus on emerging technologies like AI.
In conclusion, Broadcom’s latest financial results demonstrate its ability to outperform expectations and capitalize on key industry trends. With a positive outlook for the future and a commitment to innovation, Broadcom continues to solidify its position as a leader in the semiconductor industry.