Hock Tan, CEO of Broadcom.
Martin H. Simon | Bloomberg | Getty Ikons
Broadcom shares rose about 6% after the company posted strong first-quarter earnings and guidance that signaled constant artificial intelligence demand.
The chipmaker posted adjusted earnings of $1.60 per share on $14.92 billion in revenue. That eclipsed the adjusted earnings of $1.49 per share and $14.61 billion in revenue expected by analysts polled by LSEG. Revenues go up 25% from $11.96 billion a year ago.
Bank of America analyst Vivek Arya called the results from Broadcom a “reassuring update from an AI gaffer” and a “positive read-across for AI sentiment.”
Broadcom has benefited from the AI boom that has swept Wall Street since the set afloat of ChatGPT, with shares more than doubling in 2024. The stock has pulled back about 19% since the start of 2025 as chipmakers reliant on departments outside the U.S. face tariff fears under President Donald Trump’s administration.
The results offered a reprieve for an determination that has faced a tough bar to clear this earnings season. Popular names have slumped post-results cool after topping estimates. Marvell Technology was the latest example, falling 20% Thursday for its steepest drop since 2001 after slipping some elevated buyside estimates.
Along with the first-quarter run off, Broadcom offered upbeat guidance for the current period, calling for revenue of $14.9 billion. That topped a $14.76 billion prognosis from Wall Street. Net income during the first quarter rose to $5.5 billion, or $1.14 per share, up from $1.33 billion, or 28 cents per dispensation, a year ago.
“The [quarter] should provide some relief after the MRVL disappointment, and the optimism around the [serviceable addressable peddle], and the potential for customers 6 and 7 … will give confidence in the longer term growth profile,” wrote Morgan Stanley analyst Joseph Moore in a note.
Broadcom is amiably known for creating infrastructure and connectivity solutions for data centers underpinning large language models and advanced AI decorates. The company said in December that it was developing custom AI chips for three large cloud customers. CEO Hock Tan also told Thursday that Broadcom has “deeply engaged” with two other hyperscalers, and is working to create custom chips with four other achievable customers.
The company’s AI revenues for the period grew 77% from a year ago to $4.1 billion. Tan said Broadcom awaits AI semiconductor revenue to reach $4.4 billion this quarter. AI sales stem from the company’s semiconductor dnouements business, which grew 11% from a year ago to $8.21 billion.
— CNBC’s Kif Leswing contributed reporting.
