Particle.news
Download on the App Store
12 ARTICLES
·
last wk.

Broadcom Tops Q2 Earnings on AI Surge, Guides Higher for Q3

Broadcom’s strong second quarter performance, led by 46% year-over-year AI revenue growth, underpins a forecast of $5.1 billion in AI sales for Q3.

Image
Image
Image
Image

Overview

  • Broadcom reported Q2 revenue of $15 billion, a 20% increase year-over-year, and adjusted earnings per share of $1.58, both exceeding Wall Street expectations.
  • AI segment sales rose 46% year-over-year to $4.4 billion, driven by heightened demand for custom networking chips from hyperscale data centers.
  • The company projected Q3 total revenue of about $15.8 billion and forecast AI revenue growth to $5.1 billion, marking its tenth consecutive quarter of AI segment expansion.
  • Infrastructure software revenue, including VMware, climbed 25% to $6.6 billion, highlighting the impact of the VMware acquisition on Broadcom’s enterprise business.
  • Despite the upbeat results and guidance, shares declined in after-hours trading as investors weighed Broadcom’s high valuation, with a price-to-sales ratio of 21.5 and a price-to-earnings ratio of 95.1.