"The AI chipmaker reported record revenue of $16 billion, a 22% year-over-year increase, driven by a 63% surge in AI semiconductor revenue to $5.2 billion. Its infrastructure software segment, bolstered by the 2023 VMware acquisition, grew 43% to $6.79 billion. Broadcom's adjusted EBITDA hit $10.7 billion, up 30% from last year, reflecting robust profitability. The company also raised its Q4 revenue guidance to $17.4 billion, surpassing Wall Street's $17.02 billion estimate, with AI revenue expected to reach $6.2 billion."
"Broadcom's Q3 performance underscores its pivotal role in the AI infrastructure landscape. The company's AI revenue growth of 63% year-over-year, driven by custom AI accelerators (XPUs) and Ethernet networking solutions, highlights its ability to meet soaring demand from hyperscale cloud providers. Semiconductor solutions, which include these AI chips, jumped 57% to $9.17 billion, accounting for a significant portion of total revenue. The infrastructure software segment, including VMware, contributed $6.79 billion, showcasing Broadcom's diversified portfolio."
Broadcom reported record fiscal third-quarter revenue of $16 billion, a 22% year-over-year increase, led by a 63% surge in AI semiconductor revenue to $5.2 billion. Infrastructure software revenue, aided by the 2023 VMware acquisition, rose 43% to $6.79 billion. Adjusted EBITDA reached $10.7 billion, up 30% year-over-year, and adjusted EBITDA margin expanded to 66%. The company raised fourth-quarter revenue guidance to $17.4 billion with AI revenue expected at $6.2 billion. Free cash flow grew 47% to $7.02 billion, and a $110 billion backlog is heavily weighted toward AI. A higher XPU mix is expected to reduce gross margin by about 70 basis points next quarter. AVGO stock climbed about 14%, pushing market capitalization past $1.6 trillion.
Read at 24/7 Wall St.
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