From CNBC: 2025-06-05 19:57:00

Broadcom reported strong Q2 results with revenue up 20% to $15 billion and adjusted EPS up 44% to $1.58. Despite a 4% stock drop, the business is in good shape. CEO Hock Tan expects robust growth in AI revenue to continue into fiscal 2026, with strong demand for custom AI chips and networking solutions. Broadcom repurchased $4.2 billion in shares this quarter, continuing a shareholder-friendly capital allocation strategy. The company’s Q2 semiconductor solutions revenue increased 17% to $8.41 billion, with AI semiconductor revenue up 46% to $4.4 billion. Custom AI accelerators and networking chips are driving growth, with networking revenue more than doubling year-over-year. CEO Tan is optimistic about continued AI infrastructure investment, expecting an acceleration in custom chip demand in the back half of 2026. Broadcom CEO Hock Tan noted slow recovery in some segments but highlighted growth in enterprise networking and server storage solutions. Industrial sales and wireless revenues were down. Infrastructure software revenue grew 25% to $6.6 billion with 93% gross margin. Tan forecasts $15.8 billion total revenue for Q3 2025, including significant AI revenue growth. Adjusted EBITDA expected to be $10.43 billion. (Source: CNBC)



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