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2d ago

Broadcom’s AI Chip Revenue Jumps 46% in Q2, Forecasts Continued Growth

The company beat analysts with $15 billion in sales, projecting AI revenue will reach $5.1 billion in Q3 on robust hyperscaler orders.

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(humphery/Shutterstock)

Overview

  • Broadcom’s Q2 revenue rose to $15 billion, edging past the $14.99 billion consensus, as its semiconductor segment climbed 16.7% to $8.41 billion.
  • AI semiconductor sales surged 46% year-over-year to $4.4 billion, marking ten straight quarters of double-digit growth in custom AI compute and networking chips.
  • CEO Hock Tan said he expects AI revenue to accelerate to $5.1 billion next quarter, driven by continued investments from hyperscale cloud partners.
  • Despite the upbeat outlook, Broadcom shares fell 3% in premarket trading as investors weighed high sector expectations.
  • Analysts at Freedom Capital Markets and Seaport Research highlight Broadcom’s Tomahawk6 networking chip and VMware acquisition as key factors that could help it challenge Nvidia’s market lead.