Broadcom recently released their earnings report for the second fiscal quarter, exceeding analysts’ expectations. The company reported an adjusted earnings per share of $10.96, surpassing the estimated $10.84, and revenue of $12.49 billion compared to the expected $12.03 billion.
In addition to their impressive financial performance, Broadcom announced a 10-for-1 stock split. This move is set to begin trading on a split-adjusted basis on July 15th and led to a 10% rise in the stock price during extended trading.
Looking ahead, the chipmaker anticipates approximately $51 billion in sales for its fiscal 2024 year. This forecast represents an increase from the company’s previous guidance and slightly exceeds consensus expectations of $50.42 billion.
Broadcom is among the chipmakers capitalizing on the artificial intelligence boom as its devices support AI applications favored by the tech industry. The company reported $3.1 billion in sales from AI products during the quarter, highlighting the growing demand in this sector.
Broadcom’s collaboration with Google, particularly in the development of AI chips like the TPU, has been a significant driver of revenue growth. Additionally, the acquisition of software company VMware for $69 billion has further bolstered Broadcom’s sales and future outlook.
Broadcom’s overall revenue surged by 43% year-over-year during the quarter, showcasing robust financial performance. Excluding VMware sales, the revenue would still have increased by 12% on an annual basis, underscoring the company’s core business strength.
Broadcom’s recent earnings report reflects a strong performance across various metrics, beating expectations and demonstrating resilience in a competitive market. The company’s strategic initiatives in the AI space, coupled with key partnerships and acquisitions, have positioned it for continued growth and success in the future.