From Nasdaq: 2024-06-10 15:00:00

Broadcom (AVGO) is set to report its second-quarter fiscal 2024 results on June 12. Revenue estimate is $12.04 billion, up 37.88% from Q2 2023. Earnings estimate is $10.79 per share, up 4.55% from Q2 2023. Company’s earnings have beaten estimates in previous quarters with 2.81% average surprise.
Fiscal Q2 likely benefited from Broadcom’s expanding GenAI portfolio, with AI revenues reaching $2.3 billion in Q1. Semiconductor Solutions revenues estimated at $7.14 billion, up 4.8% YoY.
Continued strong bookings at VMware could contribute to top-line growth. Broadcom sees double-digit sequential growth throughout fiscal year. Long-term prospects supported by growing demand for AI infrastructure and deployment of GenAI portfolio.
Broadcom’s Bailly is a 51.2 Tbps co-packaged optics Ethernet switch. Broadcom’s ASICs are used by major customers like Alphabet and Meta Platforms for AI and machine learning tasks. Company expands partnership with Google and Microsoft to enhance user experiences and support VMware Cloud Foundation subscriptions.
Broadcom expects fiscal 2024 AI revenues of $10 billion (up from $7.5 billion) and networking revenues to rally 35% YoY. Challenges include sluggishness in broadband and server storage markets, impacting top-line growth. Company’s valuation is stretched, with a Zacks Rank #3 (Hold).
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Read more at Nasdaq: Is Broadcom (AVGO) Stock Worth Buying Ahead of Q2 Earnings?