Broadcom Inc. (AVGO) reported results for its fiscal Q2 on Thursday, achieving sales of $15 billion, a 20% year-over-year increase, surpassing estimates of $14.94 billion. AI semiconductor revenue soared to $4.4 billion, accounting for over half of the semiconductor segment’s total revenue, marking a 46% increase. Broadcom’s Q2 earnings per share (EPS) reached $1.58, beating expectations of $1.57, and reflecting a 43% increase compared to the same quarter last year.
Owing to its acquisition of VMware for over $60 billion in 2023, Broadcom has beneficially enhanced its AI infrastructure capabilities, leading to an impressive Q2 adjusted EBITDA of $10 billion, a 35% rise. For Q3, the company has raised its sales guidance to $15.8 billion, a 21% increase from the prior year, and anticipates AI semiconductor revenue will rise to $5.1 billion, a 60% increase.
Broadcom has consistently exceeded earnings estimates for 17 consecutive quarters and is projecting continued growth, with total semiconductor revenue expected to grow 25% this quarter. The company’s operations indicate a strong trajectory as it integrates VMware into its overall strategy.
