Overview
- Fiscal Q1 revenue rose 29% to $19.3 billion and adjusted EPS increased 28% to $2.05, with AI revenue up 106% to $8.4 billion.
- Management guided Q2 revenue to about $22.0 billion and expects $10.7 billion in AI semiconductor sales, implying roughly $14.8 billion in total AI revenue, up about 76% year over year.
- CEO Hock Tan said Broadcom is engaged with six deep, multiyear customers on custom AI accelerators, without naming the clients.
- Semiconductor revenue reached $12.5 billion, up 52%, as AI networking grew 60% and accounted for about one-third of AI revenue; infrastructure software edged up 1% with VMware up 13%.
- The company returned $10.9 billion to shareholders in Q1 and authorized up to $10 billion more in buybacks, while noting its five largest custom-chip customers could generate over $100 billion in AI chip revenue in fiscal 2027.