Broadcom delivers strong earnings view as CEO touts growth with AI labs
Broadcom gave a disappointing revenue forecast for the current quarter but provided robust earnings guidance for fiscal 2028.
TL;DR
- Broadcom exceeded earnings per share ($3.32 vs. $3.24 expected) and revenue ($29.59 billion vs. $29.36 billion expected) for its fiscal fourth quarter.
- Revenue increased by 86% year-over-year to $29.59 billion, with net income tripling.
- The company designs custom chips for AI leaders such as Google, Meta, and OpenAI, with its stock jumping sixfold since the end of 2022.
- Broadcom expects to double AI revenue to $115 billion in fiscal 2027 and double again to $230 billion in fiscal 2028.
- CEO Hock Tan announced plans to speed up shipments of AI processors to Anthropic and Google, and noted upcoming second and third-generation chips for OpenAI.
- The company is looking to provide tens of billions of dollars of processors to Google annually for several years.