Fri Dec 13 14:50:00 UTC 2024: ## Broadcom’s AI Boom Fuels Record Earnings and Stock Surge
**SANTA CLARA, Calif. (CNBC)** – Chipmaker Broadcom announced record fourth-quarter earnings Thursday, driven by a surge in demand for artificial intelligence (AI) chips. The company’s stock jumped 13% in after-hours trading following the announcement.
Broadcom exceeded analysts’ expectations, reporting fourth-quarter revenue of $14.6 billion, a 51% year-over-year increase. Net income reached $4.32 billion, a 23% rise compared to the same period last year. The company’s semiconductor solutions group, which includes AI chips, saw a 12% increase in revenue to $8.23 billion. Remarkably, Broadcom’s AI revenue for the entire year more than tripled, reaching $12.2 billion—a 220% jump.
CEO Hock Tan attributed the growth to the booming generative AI infrastructure market and revealed that Broadcom is collaborating with three major cloud customers on custom AI chip development. He projects each customer will deploy 1 million AI chips by 2027, creating a potential market opportunity of $60 billion to $90 billion for Broadcom’s AI chips (XPUs) and related networking components by 2027.
The company’s infrastructure software division also saw significant growth, nearly tripling its revenue to $5.82 billion, largely boosted by the recent VMware acquisition.
Broadcom’s strong performance extends beyond the current quarter, with the company forecasting first-quarter revenue of approximately $14.6 billion. Further demonstrating confidence, Broadcom announced an 11% increase in its quarterly dividend, reaching 59 cents per share in fiscal 2025. The impressive results underscore Broadcom’s leading position in the rapidly expanding AI market.
First Piper 