So, you know that whole AI boom everyone's been talking about? For Broadcom Inc. (AVGO), it's not just talk—it's a revenue rocket ship. The semiconductor and software giant reported its fiscal first-quarter results after the bell Wednesday, and the numbers tell a story of a company riding the AI wave to new heights.
Broadcom posted revenue of $19.31 billion, edging past analyst estimates of about $19.20 billion. Adjusted earnings came in at $2.05 per share, also beating the Street's call for $2.02 per share. That top line represents a hefty 29% jump compared to the same quarter last year. But the real headline is where that growth is coming from.
"Q1 AI revenue of $8.4 billion grew 106% year-over-year, above our forecast, driven by robust demand for custom AI accelerators and AI networking," said Hock Tan, Broadcom's president and CEO. "Our AI revenue growth is accelerating, and we expect AI semiconductor revenue to be $10.7 billion in Q2."
Let's pause on that for a second. The company's AI-related sales more than doubled. And management isn't just saying the trend will continue; they're forecasting it will get even bigger next quarter. That's the kind of confidence that gets investors' attention.
The financial engine is humming along nicely, too. Broadcom generated about $8.26 billion in cash from operations and $8.01 billion in free cash flow for the quarter. It finished the period with a war chest of roughly $14.17 billion in cash and equivalents.
Looking ahead, the company laid out a bullish roadmap. For the fiscal second quarter, Broadcom expects revenue of approximately $22 billion. That's a significant step up from analyst estimates, which were hovering around $20.68 billion. The company also anticipates adjusted EBITDA will come in at 68% of that projected revenue.
In a move that rewards shareholders for sticking around, Broadcom's board approved a quarterly cash dividend of 65 cents per share. It's payable on March 31 to shareholders of record as of March 23.
Despite the strong print, Broadcom shares were essentially flat in after-hours trading, dipping a mere 0.03% to $317.42. Sometimes the market needs a minute to digest a report this packed with big numbers and even bigger forecasts. Management will have a chance to provide more color on the earnings call scheduled for later Wednesday evening.
