Broadcom (AVGO) reported record fiscal Q1 sales of $19.31 billion, a 29% year-over-year increase, driven significantly by AI semiconductor revenue which surged 106% to $8.4 billion. This surpassed analyst estimates of $19.28 billion and contributed to a 4% stock rise on a volatile trading day, while the Dow Jones fell by 1.61%.
Additionally, Broadcom’s Q1 earnings per share (EPS) climbed 28% to $2.05, exceeding expectations of $2.03. The company’s guidance suggests further growth, predicting AI chip sales will double in Q2 to reach $10.7 billion, contributing to overall sales expectations of $22 billion—47% growth compared to the previous year.
Amidst these results, Broadcom also authorized a $10 billion share repurchase program, enhancing investor sentiment as it aims to leverage the ongoing demand for AI technologies.
