From CNBC: 2025-03-06 17:48:33

Broadcom reported first-quarter earnings that surpassed expectations, leading to a 16% stock surge in after-hours trading. Revenue reached $14.92 billion, beating estimates of $14.61 billion. The company forecasted $14.9 billion in second-quarter revenue, a 25% increase from the previous year. Net income rose to $5.5 billion, driven by a 77% increase in AI revenue.

Broadcom’s strong performance is attributed to its artificial intelligence business, which recorded $4.1 billion in revenue during the first quarter. CEO Hock Tan anticipates continued growth in AI semiconductor revenue, projecting $4.4 billion for the second quarter. The company also saw a 47% increase in software sales, driven by its VMware acquisition.

Investors have shown concern over President Donald Trump’s tariffs, causing a 23% decline in Broadcom’s stock prior to the earnings report. However, the company’s focus on AI technology and strong financial results are expected to drive future growth and market performance.



Read more at CNBC:: Broadcom (AVGO) earnings report Q1 2025