Broadcom AI Revenue Triples to $16.7B — SkimNews
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- Broadcom reported quarterly revenue of $29.59 billion, up 86% year over year, while adjusted earnings per share rose 96% to $3.32.
- AVGO shares fell 3% in premarket trading despite Broadcom beating Wall Street estimates of $29.25 billion in sales and $3.21 in adjusted earnings per share.
- Broadcom generated $16.7 billion in quarterly AI semiconductor revenue, which tripled as hyperscalers continued buying custom AI chips and networking gear.
- Hock Tan said Broadcom expects to ship $350 billion of AI semiconductors to six key hyperscaler customers over the next two years, including $115 billion in fiscal 2027 and $230 billion in fiscal 2028.
- Hock Tan said Broadcom's AI networking revenue is expected to grow just as fast as its XPUs over the next few years.
- JPMorgan analyst Harlan Sur lifted Broadcom's earnings estimates and maintained an Overweight rating, calling the company's AI revenue outlook strong and conservative.
Why it matters: Broadcom's $16.7 billion quarterly AI semiconductor revenue and $350 billion two-year shipment outlook make its 3% premarket decline look like a sell-the-news reaction, not a rejection of current AI demand. The distinction matters because the $350 billion figure is management's forecast for fiscal 2027-2028, not revenue already reported.
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