Catenaa, Friday, March 07, 2025- Broadcom recorded more than expected revenue in the first quarter of 2025, the company reported on Thursday, with 25% growth year over year driven by Artificial Intelligence (AI).
Chipmaker’s revenue stood at $14.9 billion for the first quarter, while adjusted net income came in at $7.82 billion, up from $5.25 billion a year earlier and ahead of expectations.
The revenue gains were mainly through AI semiconductor solutions and infrastructure software as AI revenue grew 77% year-over-year to $4.1 billion and infrastructure software revenue grew 47% year-over-year to $6.7 billion.
“We expect continued strength in AI semiconductor revenue of $4.4 billion in Q2, as hyperscale partners continue to invest in AI XPUs and connectivity solutions for AI data centers.” said Hock Tan, President and CEO of Broadcom Inc.
Also, Broadcom recorded revenue of $51.6 billion fiscal year 2024, a 44% year-over-year increase, driven by a 220% surge in AI-related revenue to $12.2 billion.
The company expects second quarter revenue to be at approximately $14.9 billion., slightly above the analyst consensus of $14.82 billion.
The Company’s Board of Directors has approved a quarterly cash dividend of $0.59 per share
Shares of Broadcom jumped 9% in extended trading Thursday following the release. Despite a tough start to 2025, they’ve gained over 27% in the past 12 months through the closing bell.
Broadcom is valued at 15 times this year’s forecast sales — a multiple twice its 10-year average, according to LSEG. Its shares are up 16 per cent since November’s US election.
