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Broadcom Tops Q4, Lifts Outlook on AI Surge as Margin Mix Tightens

The outlook underscores explosive AI demand, with profitability pressured by a heavier mix of lower‑margin systems.

Overview

  • Fiscal Q4 revenue reached $18.02 billion with adjusted EPS of $1.95, beating estimates as AI semiconductor sales jumped about 74% year over year.
  • Guidance calls for roughly $19.1 billion in Q1 revenue, with AI semiconductor revenue expected to double to about $8.2 billion driven by custom accelerators and Ethernet AI switches.
  • Management warned consolidated gross margin will decline by approximately 100 basis points sequentially due to a larger share of lower‑margin AI systems.
  • Broadcom cited a ~$73 billion backlog slated to ship over about 18 months, with analysts noting concentration among a small set of large customers.
  • The board approved a 10% dividend increase to $0.65 per share, and shares slipped in after‑hours trading as investors weighed margin pressure and backlog composition.