Broadcom (NASDAQ: AVGO) reported a remarkable 106% growth in AI revenue for its fiscal first quarter, reaching $8.4 billion, significantly exceeding the company’s expectations. The semiconductor solutions segment achieved a record revenue of $12.5 billion, while overall revenue rose by 29% to $19.3 billion. The company anticipates AI semiconductor revenue will reach $10.7 billion in the fiscal second quarter, indicating a projected growth of 140% year-over-year.
As of Friday, Broadcom shares closed at an all-time high of $446.77, elevating the company’s market capitalization to over $2.1 trillion. Management predicts that AI chip revenue could exceed $100 billion by 2027, supported by key clients such as Alphabet, Meta Platforms, Anthropic, and OpenAI. The company is benefiting from strong cash flow, recording $8 billion in free cash flow during the fiscal Q1, and has initiated a $10 billion stock buyback program.
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