BROADCOM INC

Broadcom reported robust fiscal Q4 2024 results, highlighting a 51% year-over-year revenue increase to $14 billion and a 28% rise in non-GAAP earnings per share to $1.42, surpassing analyst expectations. Notably, AI-related revenue surged to $12.2 billion, anticipated to grow by 65% year-over-year in the next quarter, constituting 26% of overall revenue. This positions Broadcom as a strong contender in the custom AI chip market, expected to expand significantly with a projected $60-$90 billion addressable market by 2027.

Following these results, Broadcom's shares surged by approximately 14% as the company signaled strong demand for its custom AI chips, which could potentially add $120 billion to its market value of $843 billion. CEO Hock Tan highlighted that AI presents a revenue growth opportunity ranging from $60 billion to $90 billion by fiscal 2027. Broadcom has captured over $12 billion of the anticipated $15-$20 billion serviceable AI revenue for fiscal 2024.

Broadcom has also witnessed substantial growth in its custom AI networking segment, reporting a remarkable 158% year-over-year surge. This success positions the company to capitalize on the increasing demand for tailored chips essential for AI workloads. Analysts have raised their price targets for the stock, reflecting optimism about Broadcom's expanding role in the AI market, particularly as competitors like Nvidia might face growth challenges.

Overall, Broadcom's strong performance, especially in the AI sector, combined with supportive US policies, highlights a compelling investment opportunity amid the booming semiconductor landscape.

51% year-over-year revenue increase to $14 billion

Broadcom Reports Strong Q4 Earnings and Surge in AI Revenue, Attracts Investor Attention Amid Growing Demand for Custom AI Chips

Broadcom's Q4 2024 results reveal a staggering 51% revenue increase, driven by a remarkable surge in AI-related earnings. As the custom AI chip market expands, can Broadcom maintain its competitive edge amidst rising demand and potential market challenges?