Broadcom, a leading chipmaker, recently announced its earnings for the second fiscal quarter, surpassing analysts’ estimates. Alongside this positive news, the company revealed plans for a 10-for-1 stock split, scheduled to commence trading on a split-adjusted basis in mid-July.
Following the announcement, Broadcom’s stock surged approximately 10% in after-hours trading, reflecting investor confidence in the company’s performance.
Key figures from the quarterly report include:
- Earnings per share: $10.96 adjusted, exceeding the expected $10.84
- Revenue: $12.49 billion, surpassing the anticipated $12.03 billion
Looking ahead, Broadcom anticipates sales of around $51 billion for its fiscal 2024 year, a figure that surpasses both the company’s previous forecast and consensus expectations of $50.42 billion.
The company reported $2.12 billion in net income for the quarter, translating to $4.42 per share, compared to $3.48 billion and $8.15 per share in the corresponding period last year.
Notably, Broadcom has been capitalizing on the artificial intelligence (AI) trend, with $3.1 billion in sales attributed to AI products during the quarter. The company’s collaboration with tech giants like Google, particularly in developing AI chips, has been a significant revenue driver.
Broadcom’s CEO, Hock Tan, highlighted the increasing demand for AI accelerators among hyperscale customers, emphasizing the company’s role in providing cutting-edge solutions for these clients.
Moreover, revenue from VMware, an enterprise software firm acquired by Broadcom for $69 billion in 2023, contributed to the company’s sales growth and outlook for the remainder of the year.
During the quarter, Broadcom’s overall revenue surged by 43% year-over-year. Excluding VMware sales, the growth stood at 12% on an annual basis, underscoring the company’s robust performance in its core business.
With these impressive results and strategic initiatives, Broadcom continues to solidify its position in the semiconductor industry and capitalize on the evolving tech landscape.
