GuShiio.com ① Broadcom released earnings exceeding expectations on Thursday, with first-quarter revenue of US$14.92 billion, and artificial intelligence chip revenue soaring 77% to US$4.1 billion;
② Broadcom is optimistic that revenue in the second quarter will be approximately US$14.9 billion, and revenue from artificial intelligence chips will reach US$4.4 billion;
③ Broadcom also revealed that it is cooperating with four ultra-large-scale customers to develop customized chips, which will further enhance its profit prospects.
Cailian News, March 7 (Editor Ma Lan)Semiconductor maker Broadcom reported earnings on Thursday. Its results exceeded Wall Street expectations, sending its share price soaring after hours. In addition, Broadcom CEO Hock Tan also made a very optimistic forecast for revenue in the second quarter of this year, easing market concerns about demand for artificial intelligence chips.
The financial report showed that Broadcom’s revenue in the first quarter was US$14.92 billion, exceeding market expectations of US$14.61 billion. Thanks to the strong application of its custom accelerators, artificial intelligence chip revenue surged more than 77% to $4.1 billion; revenue from its infrastructure software division grew more than 47% to $6.7 billion, compared with analysts ‘expectations of $6.49 billion.
Broadcom expects second-quarter revenue to be approximately $14.9 billion, compared with analysts ‘expectations of $14.76 billion, according to data compiled by LSEG.
Chen Fuyang said that as some ultra-large customers invest in customized artificial intelligence chips for data centers, the company expects revenue from artificial intelligence chips to reach US$4.4 billion in the second quarter.
It is reported that cloud computing companies have strong demand for customized AI chips and are actively looking for alternatives to NVIDIA’s expensive GPUs. Analysts expect that as artificial intelligence computing needs become more complex and personalized, large technology companies will shift from general-purpose chip products to customization, which will further benefit Broadcom.
promising
Chen Fuyang pointed out that Broadcom currently has four ultra-large-scale customers and has worked deeply with Broadcom to develop their own customized chips. He emphasized that orders from these four companies have not yet been included in Broadcom’s expected 2027 revenue opportunities. Broadcom previously said that the company will have revenue prospects of US$60 billion to US$90 billion in 2027.
One of these companies may be OpenAI, a leader in the large-model industry. Last month, it was reported that OpenAI was working with Broadcom to complete the first custom chip design and reduce its reliance on Nvidia.
In addition, Broadcom was one of the first companies to come into contact with Intel’s Advanced Manufacturing Process 18A. Sources pointed out that Broadcom has already tested wafers at the Intel factory.
Kinngai Chan, an analyst at Summit Insights, said that compared with its peers, Broadcom is in a more favorable position because its positioning in the artificial intelligence market is relatively more diversified and has customers with multiple customized artificial intelligence chips.
Boosted by optimistic earnings reports, Broadcom’s share price rose 12.82% after hours on Thursday. During the intraday session of U.S. stocks that day, Broadcom’s closing price fell 6.33%, as the market continued to doubt the future demand for artificial intelligence.
