Broadcom Reports Record Q1 Growth Driven by AI Chips and VMware Integration

The company posts $14.92 billion in revenue, fueled by surging AI semiconductor demand and a shift to bundled VMware offerings.

Broadcom's Q1 FY2025 revenue reached $14.92 billion, a 25% year-over-year increase, with net income rising 315% to $5.5 billion.
AI semiconductor revenue surged 77% year-over-year to $4.1 billion, driven by hyperscale demand for AI data center technologies.
Infrastructure software revenue, which includes VMware, grew 47% to $6.7 billion following Broadcom's strategy to upsell customers into costlier bundled subscriptions.
Approximately 70% of VMware’s largest 10,000 customers adopted Broadcom's VMware Cloud Foundation (VCF) stack, contributing to significant revenue increases.
Broadcom anticipates continued growth in Q2, projecting $14.90 billion in revenue, with AI semiconductor sales expected to rise to $4.4 billion.