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Broadcom Beats in Q4 and Lifts Outlook on AI Chips, Flags Margin Pressure, Raises Dividend

A lower‑margin AI mix alongside concentrated orders weighed on the stock in after‑hours trading.

Overview

  • Revenue rose 28% to $18.02 billion with adjusted EPS of $1.95, topping estimates as AI semiconductors and networking led growth.
  • Management guided fiscal Q1 revenue to about $19.1 billion and projected AI semiconductor sales to roughly double year over year to $8.2 billion.
  • CFO Kirsten Spears said consolidated gross margin is expected to decline by roughly 100 basis points sequentially due to a higher mix of AI revenue.
  • CEO Hock Tan disclosed an AI product backlog of about $73 billion scheduled to ship over six quarters, noting minimum levels and concentrated customer demand.
  • Broadcom’s board approved a 10% quarterly dividend increase to $0.65 per share, while shares fell roughly 4%–5% after hours as investors weighed margin guidance and customer concentration risks.