Broadcom Smashes Expectations: Q4 Earnings and Revenue Soar Past Estimates
Another quarter, another beat for the chipmaking giant. Broadcom just delivered a financial performance that left Wall Street's forecasts in the dust.
The Numbers Don't Lie
Forget the estimates—Broadcom didn't just meet them, it obliterated them. The company posted a staggering $1.95 in earnings per share, a figure that sailed past what analysts had penciled in. On the top line, the story was the same: revenue surged to a colossal $18.02 billion, proving once again that demand for its critical semiconductor and infrastructure software solutions shows no sign of slowing.
Execution in a Complex Market
This isn't about luck. It's about execution. In a sector grappling with supply chain snarls and shifting demand, Broadcom's results signal a masterclass in operational discipline. The company isn't just riding macro trends—it's actively shaping them, locking in key contracts and expanding its ecosystem dominance.
The Bottom Line for Investors
While the usual chorus of analysts will scramble to upgrade their price targets—a classic finance move of closing the barn door after the horse has bolted—the message is clear. Broadcom's engine is firing on all cylinders. For the markets, it's a potent reminder: in the tech arena, real fundamentals still have a way of cutting through the noise.
Broadcom raises forecast as AI sales double to $8.2 billion
Looking ahead, Broadcom said it expects $19.1 billion in revenue for the current quarter. That WOULD be a 28% year-over-year increase, well above the $18.3 billion consensus estimate.
CEO Hock Tan said in a statement that AI chip sales are projected to hit $8.2 billion this quarter, doubling from the same time last year. He added that demand is coming from both custom chips and networking semiconductors built for AI systems.
Back in June, Broadcom said it had three customers and four prospects for its custom AI chips. Then, in September, it revealed a fourth client who placed a $10 billion order. That customer still hasn’t been named. Market watchers are waiting to see if Broadcom confirms those clients are staying on track.
The company’s semiconductor solutions division posted $11.07 billion in revenue, a 22% increase compared to the same quarter last year. That number beat the $10.77 billion estimate from StreetAccount. This segment is where AI chip sales are booked.
Meanwhile, the infrastructure software business brought in $6.94 billion, up 26% year-over-year, topping Wall Street’s expectations as well. This segment includes revenue from the VMWare unit, which Broadcom officially absorbed earlier this year.
On the hardware side, Broadcom has been working with Google for nearly a decade on custom-designed AI chips. The current model, known as TPUv7 or Ironwood, has launched faster than anticipated.
According to Susquehanna, Google recently brought in Anthropic as a key customer, ordering up to 1 million TPUs. Meta is also buying.
In terms of shareholder returns, Broadcom said it will pay a dividend of 65 cents per share later this month, up from 59 cents previously. The company didn’t give more details on buybacks or other capital plans in this release.
Broadcom stock is up 75% year-to-date, following a full-year double in 2024. Like Nvidia, Broadcom has been one of the few U.S. chipmakers consistently delivering results as AI infrastructure spending ramps up globally.
But unlike Nvidia’s focus on GPUs, Broadcom is carving out its own space by building custom silicon for the hyperscalers.
Hock said the AI boom is only getting started, and that Broadcom’s chip orders are “just beginning to scale.” Whether those unnamed clients fully follow through or not, the company is already booking billions.
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