Key Points
Broadcom (NASDAQ: AVGO) reported fiscal first-quarter earnings on November 2, showing record revenue of $19.3 billion, which is a 29% increase year-over-year, and adjusted earnings per share (EPS) of $2.05, exceeding analysts’ expectations of $19.14 billion in revenue and $2.02 EPS. The demand for AI hardware drove this growth, with AI-based revenue soaring 106% year-over-year to $8.4 billion. Broadcom’s upcoming quarter outlook predicts revenues of $22 billion, marking a 47% year-over-year increase.
CEO Hock Tan indicated a strong future for AI, forecasting that AI semiconductor revenue could exceed $100 billion by 2027, up from a total revenue of less than $64 billion for fiscal 2025. The company also revealed new partnerships with OpenAI and plans to scale its collaboration with AI startup Anthropic. Comparatively, Nvidia (NASDAQ: NVDA) also reported record earnings, reinforcing the perception that AI adoption is accelerating.
