Broadcom Profit Report (AVGO) Q1 2025

Broadcom reported First quarter earnings On Thursday, that exceeded the expectations of analysts, and the chips manufacturer offered a strong orientation for the current quarter. The action increased by 16% in the extended trade.

This is how the company versus the consensus estimates of LSE:

• Profit per action: $ 1.60 adjusted compared to $ 1.49 expected
• Revenue: $ 14.92 billion compared to $ 14.61 billion expected

Broadcom said he expects around $ 14.9 billion in revenues of the second quarter, more than the prognosis of $ 14.76 billion for Wall Street analysts. Income in the last quarter increased 25% of $ 11.96 billion the previous year.

The company said that net income increased to $ 5.5 billion, or $ 1.14 per share, of $ 1.33 billion, or 28 cents per share, in the same period last year.

Broadcom’s artificial intelligence business is in the center of the recent boom of the company, which saw the price of its shares more than double last year. The company is one of the main infrastructure suppliers of data centers for AI, which works both in the Google custom chips and in providing essential components to establish thousands of chips together to develop advanced software.

Before pop out of time, the action fell around 23% until now in 2025, since investors revolve without part due to concern for President Donald Trump’s duty.

Broadcom said he recorded $ 4.1 billion in AI revenues during the first quarter, which is 77% higher in a year after year. These sales are reported as part of the Broadcom semiconductor solutions business, which grew 11% annually to $ 8.21 billion during the quarter.

The Broadcom CEO, Hock Tan, said in a statement that the company expects “the continuous strength in revenue from AI semiconductors”, reaching the $ 4.4 billion projected in the second quarter.

In December, Broadcom said he was developing personalized AI chips with three big cloud clients. He said Thursday that, in addition to those clients, he had “deeply committed” with two other hyperscalers, and are working with four other potential clients to develop their own customs of the personalized AI.

So he said Broadcom closely chooses partners to develop personalized ia chips that can implement the resulting product in large quantities. “To say it without surroundings, we don’t do it for new companies,” he said so.

The other important part of Broadcom’s income comes from its infrastructure software division, which includes VMware acquisition software by the company in the fourth fiscal quarter of 2023. Broadcom said it saw $ 6.7 billion in software sales during the quarter, an annual increase of 47%.

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