Broadcom Shows Strong Q4 Performance Fueled by AI Chip Demand
Broadcom reported fourth-quarter earnings that surpassed market expectations, driven by robust demand for artificial intelligence (AI) technology. The company posted adjusted earnings per share of $1.95, exceeding the analyst estimate of $1.86. Revenue reached $18.02 billion, beating the forecast of $17.49 billion, according to data compiled by LSEG.
The semiconductor giant anticipates first-quarter revenue of approximately $19.1 billion, reflecting a 28% increase year-over-year and surpassing the average analyst prediction of $18.3 billion. CEO Hock Tan highlighted that AI chip sales are expected to double to $8.2 billion, fueled by both custom AI chips and semiconductors designed for AI networking.
Net income nearly doubled to $8.51 billion, or $1.74 per share, compared with $4.32 billion, or 90 cents per share, in the same period last year. This surge underscores Broadcom’s increasing foothold in the AI semiconductor market alongside industry leader Nvidia. The company’s stock climbed 3% in after-hours trading following the announcement.
Key Highlights of Broadcom’s Q4 Results:
- Adjusted EPS: $1.95 versus $1.86 estimated
- Revenue: $18.02 billion versus $17.49 billion estimated
- Net income: $8.51 billion, up 97% year-over-year
- AI chip sales growth: 74%
- Semiconductor solutions sales: $11.07 billion, beating the $10.77 billion estimate
- Infrastructure software sales: $6.94 billion, up 39%, exceeding expectations
- Dividend increase to 65 cents per share
Broadcom’s semiconductor solutions unit, which includes AI chips, posted a 61% annual increase in sales to $11.07 billion. Meanwhile, its infrastructure software segment, featuring VMware products, grew 39% to $6.94 billion. The company also raised its quarterly dividend from 59 cents to 65 cents per share.
Broadcom continues to gain traction in the AI chip market with strategic partnerships, including supplying custom AI chips for major clients such as Google’s tensor processing units. As AI adoption accelerates, Broadcom’s positioning signals continued growth ahead in semiconductor innovation and software infrastructure.
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