Broadcom is currently experiencing a significant surge following the recent announcement of a 28% increase in fiscal Q4 profit. The company’s revenue growth has been accelerating for four consecutive quarters, with a 51% rise to $14 billion. A key driver of this impressive growth is the company’s AI revenue, which has more than tripled from fiscal 2023, reaching $12.2 billion.
CEO Hock Tan is highlighting that Broadcom is developing AI chips in collaboration with three major cloud customers. He estimates that the total addressable market for AI chips and AI networking equipment could be between $60 billion and $90 billion by 2027. This optimism underscores the company’s strategic focus on the burgeoning AI sector.
For the fiscal first quarter ending in January, analysts are expecting Broadcom to report a profit of $1.51 per share, a 37% year-over-year increase, with revenue projected to rise by 22% to $14.6 billion. These results are due to be released after the market close on Thursday.
Broadcom’s success is particularly notable amid the broader tech sell-off, demonstrating the company’s resilience and ability to capitalize on the growing demand for AI technology. As Broadcom continues to innovate and expand its AI capabilities, it remains well-positioned for future growth in this rapidly evolving market.