Broadcom and its custom AI processors are seeing strong demand as the company handily topped expectations for the fiscal first quarter.
The company, known for its AI XPUs, reported first quarter earnings of $5.4 billion, or $1.14 a share, on revenue of $14.92 billion, up 25% from a year ago. Non-GAAP earnings were $1.60 a share.
Wall Street was expecting non-GAAP earnings of $1.50 a share on revenue of $14.61 billion in the first quarter.
In the first quarter, Broadcom reported first quarter semiconductor revenue of $8.21 billion, up 11% from a year ago. Software revenue was $6.7 billion, up 47% due to VMware.
For the second quarter, Broadcom said revenue will be about $14.9 billion, well above the $14.59 billion.
CEO Hock Tan said:
"We expect continued strength in AI semiconductor revenue of $4.4 billion in Q2, as hyperscale partners continue to invest in AI XPUs and connectivity solutions for AI data centers."
