Broadcom Inc (NASDAQ:AVGO, ETR:1YD) shares jumped to a record high in after-hours trading on Thursday after the chipmaker reported record-breaking results driven by surging demand for artificial intelligence (AI) technology.
The company posted fiscal fourth-quarter revenue of $14.1 billion, in line with Wall Street estimates, while adjusted earnings per share of $1.42 and EBITDA of $9.09 billion both exceeded expectations.
Broadcom CEO Hock Tan highlighted the significant role AI played in the company's growth. "Semiconductor revenue was a record $30.1 billion, driven by AI revenue of $12.2 billion," Tan said. "AI revenue grew 220% year-on-year, fueled by our leading AI XPUs and Ethernet networking portfolio."
For the fiscal year, Broadcom reported total revenue of $51.6 billion, up 44% year-on-year, with infrastructure software revenue soaring to $21.5 billion, thanks to the successful integration of VMware. Net income climbed to $4.32 billion in the fourth quarter, compared to $3.52 billion a year earlier.
The company also announced a robust 11% dividend increase, raising its annualized payout to $2.36 per share, underscoring its confidence in sustained growth.
Broadcom provided upbeat guidance for the first quarter of fiscal 2025, forecasting revenue of $14.6 billion, exceeding analyst expectations of $14.55 billion. Adjusted EBITDA is projected to be 66% of revenue.
"Continued strong AI demand momentum and synergies from VMware integration will drive our performance in the coming quarters," said CFO Kirsten Spears.
The explosive growth in AI revenue reflects Broadcom's strategic focus on next-generation technology, including AI accelerators and networking solutions. These advancements are central to the company's competitive edge in the semiconductor market, which supplies major tech giants like Apple Inc (NASDAQ:AAPL, ETR:APC).