From Nasdaq: 2025-06-06 16:47:00

Broadcom AVGO exceeded Q2 expectations and offered positive guidance due to its growth in AI networking chips and custom accelerators, with Q2 sales up 20% to $15 billion. The acquisition of VMware for over $60 billion has also contributed to Broadcom’s success.

Broadcom’s Q2 results showed a 17% increase in total semiconductor revenue to $8.4 billion, with AI semiconductor revenue reaching $4.4 billion. Custom accelerators revenue grew by double digits, while AI networking revenue soared over +170%.

Broadcom’s Q2 EPS of $1.58 surpassed estimates, and consolidated adjusted EBITDA rose 35% to $10 billion. Gross profit reached $11.9 billion with a 79.4% margin, positioning Broadcom for another record year in operating efficiency.

Broadcom raised its Q3 guidance, expecting sales to increase 21% to $15.8 billion, with AI semiconductor revenue projected to soar 60% to $5.1 billion. The company anticipates total semiconductor revenue to grow 25% and VMware to boost infrastructure software revenue by 16%.

With the successful integration of VMware, Broadcom is set for double-digit growth in fiscal 2025 and FY26, earning a Zacks Rank #2 (Buy). Despite a recent selloff, strategists see potential in Broadcom stock with its strong AI growth and collaborations with tech giants like Alphabet, Meta Platforms, Microsoft, and Amazon.



Read more at Nasdaq: Buy into Broadcom’s AI Growth as VMware Lifts Q2 Earnings?