Overview
- Broadcom reported fiscal Q1 revenue of $19.31 billion, up 29.5% year over year, with AI semiconductor sales of $8.4 billion that rose 106%, a record ~68% adjusted EBITDA margin, and $8.01 billion in free cash flow.
- Management cited an AI order backlog of about $73 billion and set a public goal to top $100 billion in AI sales by 2027.
- The next quarter’s outlook was reported with different figures, with The Street quoting $14.8 billion in Q2 semiconductor revenue while Yahoo Finance noted guidance of $10.7 billion in AI semiconductor revenue and about $22 billion in total revenue.
- The company said hyperscalers are ramping its custom AI accelerators and Ethernet-based networking like Tomahawk and Jericho, and VMware’s shift to subscriptions is lifting recurring software revenue.
- UBS’s Timothy Arcuri raised his AI chip revenue estimate above $130 billion for fiscal 2027, though coverage also flagged risks from heavy reliance on a few cloud customers, VMware integration challenges, margin pressure, and competition from Nvidia and AMD.