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Broadcom achieved a result for the second fiscal quarter on Wednesday, beating analysts’ estimates. The company also announced a 10-for-1 stock split that can begin trading on July 15 on a split-adjusted basis.
The stock rose about 10% in prolonged trading.
Here’s how the corporate performed in comparison with LSEG consensus estimates for the quarter ending May:
- Earnings per share: $10.96 adjusted vs. $10.84 expected
- revenue: $12.49 billion versus $12.03 billion expected
The chipmaker expects revenue of about $51 billion for fiscal 2024, up from the corporate’s previous forecast and barely above consensus expectations of $50.42 billion.
Broadcom reported net income of $2.12 billion, or $4.42 per share, for the quarter, compared with net income of $3.48 billion, or $8.15 per share, within the year-ago period.
Broadcom is considered one of the chipmakers benefiting from the synthetic intelligence boom because its devices can run the sort of AI applications which have excited the technology industry. Broadcom said $3.1 billion in revenue within the quarter was attributable to revenue from AI products. Broadcom works with Googlewhich partially develops its own AI chip, a so-called TPU.
“When we talk about AI accelerators, you may know that our hyperscale customers are accelerating their investments to increase the performance of these clusters,” Broadcom CEO Hock Tan said on the conference call. “And to that end, we just received the next-generation custom AI accelerators for our hyperscale customers.”
The company also announced that it had received revenue from VMware, an enterprise software company it acquired for $69 billion. At the tip of last 12 monthscontributed to its revenue growth and its forecast for the rest of the 12 months.
The company’s total revenue rose 43 percent year-over-year within the quarter. Excluding the VMware sales, the year-over-year increase would have been 12 percent, Broadcom said.
Correction: The consensus estimate was $12.03 billion. An earlier version misstated the figure.
