Broadcom shares soar 16% as earnings top estimates on demand for custom AI chips
Broadom reported earnings and revenue that topped analysts' expectations.
Broadcom reported first-quarter earnings on Thursday that topped analysts' expectations, and the chipmaker offered strong guidance for the current quarter. The stock jumped 16% in extended trading.
Here's how the company did versus LSEG consensus estimates:
Earnings per share: $1.60 adjusted vs. $1.49 expected
Revenue: $14.92 billion vs. $14.61 billion expected
Broadcom said it expects about $14.9 billion in second-quarter revenue, higher than the $14.76 billion forecast by Wall Street analysts. Revenue in the last quarter rose 25% from $11.96 billion a year earlier.
The company said net income increased to $5.5 billion, or $1.14 per share, from $1.33 billion, or 28 cents per share, in the same period last year.
Broadcom's artificial intelligence business is at the center of the company's recent boom, which saw its stock price more than double last year. The company is one of the primary data center infrastructure vendors for AI, working both on Google's custom AI chips as well as providing essential components for networking thousands of other chips together to develop advanced AI software.
Prior to the after-hours pop, the stock was down about 23% so far in 2025, as investors rotate out of risk partly due to concern about President Donald Trump's tariffs.