Broadcom (AVGO) late Thursday beat Wall Street’s targets for its fiscal first quarter and forecast sales above views for the current period. AVGO stock rose in extended trading.
The fabless chipmaker and infrastructure software provider earned an adjusted $1.60 a share on sales of $14.92 billion in the quarter ended Feb. 2. Analysts polled by FactSet had expected earnings of $1.51 a share on sales of $14.62 billion in fiscal Q1. On a year-over-year basis, Broadcom earnings increased 45% while sales advanced 25%.
↑ X NOW PLAYING Here’s Why Difficult Times In The Market Make Things Easier For Traders For the current quarter ending May 4, Broadcom forecast revenue of $14.9 billion, up 19% year over year. Wall Street was modeling $14.71 billion in sales in the fiscal second quarter.
Artificial intelligence chips and infrastructure software drove Broadcom’s better-than-expected results, Chief Executive Hock Tan said in a press release.
“Q1 AI revenue grew 77% year over year to $4.1 billion and infrastructure software revenue grew 47% year over year to $6.7 billion,” Tan said.
He added, “We expect continued strength in AI semiconductor revenue of $4.4 billion in Q2, as hyperscale partners continue to invest in AI XPUs and connectivity solutions for AI data centers.”
Palo Alto, Calif.-based Broadcom makes custom AI server chips for Alphabet‘s (GOOGL) Google, Facebook parent Meta Platforms (META) and TikTok owner ByteDance. Broadcom also reportedly has won custom AI chip projects with Apple (AAPL) and OpenAI.
In addition to application-specific integrated circuits (ASICs), Broadcom makes networking and wireless connectivity products and owns virtualization software firm VMware.
AVGO Stock Rebounds After Report
In after-hours trading on the stock market today, AVGO stock jumped more than 8% to 194.69. During the regular session Thursday, AVGO stock sank 6.3% to close at 179.45.
Year to date through Thursday’s close, Broadcom stock is down 22.6%.
Meanwhile, AVGO stock is on the IBD Tech Leaders list.
Follow Patrick Seitz on X, formerly Twitter, at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
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