Artificial intelligence (AI) is a significant focus on Wall Street, with many companies benefiting from the boom. Notable companies in this sector include Arista Networks (NYSE: ANET) and Broadcom (NASDAQ: AVGO), both of which have reported strong financial results driven by AI-related demand.
Arista Networks
In Q1 2024, Arista Networks reported a 16% year-over-year revenue growth, totaling a notable financial performance driven by significant partnerships with Meta and Microsoft, which account for 39% of its total revenue. Additionally, net income surged by 46%, supported by an increase in gross margin and reduced operating expenses.
Broadcom
For its fiscal Q2 2024, Broadcom’s revenue jumped 43% year-over-year to $12.5 billion, largely driven by a 280% surge in AI product sales, which comprised approximately 25% of total revenue. Despite the significant growth attributed to the acquisition of VMWare, Broadcom anticipates that AI-related revenue could reach around $11 billion for the full year.
