Broadcom Exceeds Q4 Estimates with AI-Driven Growth
Broadcom Inc. reported fourth-quarter earnings that surpassed analyst expectations, with revenue reaching $18.02 billion against a forecast of $17.49 billion. Adjusted earnings per share stood at $1.95, outperforming the $1.86 consensus. Net income nearly doubled year-over-year to $8.51 billion, propelling the stock 3% higher in after-hours trading.
The company raised its guidance for the current quarter to $19.1 billion in revenue, a 28% increase from the prior year, fueled by booming demand for AI chips. CEO Hock Tan highlighted that AI-related sales are projected to double to $8.2 billion, driven by custom chips and networking semiconductors. Broadcom's semiconductor division posted $11.07 billion in revenue, up 22% annually.