Broadcom (AVGO, Financials) reported first-quarter earnings that exceeded Wall Street expectations, driven by strong AI-related revenue growth. The company's stock climbed 8% in after-hours trading.
Broadcom shares were trading at $187.52, up $9.07 (5.05%), as of 12:35 p.m. GMT-5 on March 7.
At $1.60, adjusted earnings per share for the quarter above consensus expectation of $1.50. Rising 25% year over year to $14.92 billion, revenue above analyst estimates of $14.61 billion.
While infrastructure sales came at $6.7 billion, Broadcom's semiconductor solutions sector produced $8.21 billion. Sales generated by artificial intelligence jumped 77% year over year to $4.1 billion; infrastructure software revenue climbed 47% to $6.7 billion.
CEO Hock Tan highlighted ongoing investments in artificial intelligence, especially in XPUs and networking solutions for AI data centers. Broadcom provides artificial intelligence chips to big tech businesses like ByteDance, Alphabet (GOOGL, Financials), and Meta (META, Financials).
Broadcom projects income of $14.9 billion for the second quarter, above estimates of $14.59 billion. The business estimates adjusted EBITDA to represent 66% of overall income.
Broadcom also announced a $0.59 per share dividend payable on March 31 to record as of March 20.
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