Broadcom reports upbeat guidance on booming AI-led chip demand; shares jump

Investing.com - Broadcom on Thursday delivered upbeat guidance for the current quarter following better-than-expected fiscal first-quarter results that were underpinned by growing AI-led demand for its custom AI chips.

Broadcom Inc (NASDAQ: AVGO) jumped more than 13% in recent afterhours trading following the report.

For the three months ended Feb. 2, Broadcom announced adjusted earnings per share of $1.60 on revenue of $14.92B. Analysts polled by Investing.com anticipated EPS of $1.51 on revenue of $14.59B.

Semiconductor solutions, its core business, rose 55% to $8.2B in Q1, while infrastructure software rose 45% to $6.7B.

Q1 AI revenue grew 77% year-over-year to $4.1B.

Looking ahead to fiscal Q2, revenues were expected to be $14.9B, topping consensus of $14.73B. Adjusted earnings before interest depreciation, and amortization, or EBITDA, was guided to approximately 66% of projected revenue for 2025.

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