Broadcom’s Financial Results Top Wall Street Estimates

Chipmaker Broadcom (AVGO) has reported quarterly financial results that narrowly beat Wall Street’s forecasts.

The Silicon Valley-based company announced earnings per share (EPS) of $1.58 U.S., which was ahead of the $1.56 U.S. expected among analysts.

Revenue of $15 billion U.S. edged the $14.99 billion U.S. consensus expectation of analysts. The company’s sales were up 20% from a year ago.

Broadcom’s management team offered robust forward guidance, saying they now expect about $15.80 billion U.S. in revenue for the current quarter.

The new guidance surpassed the $15.70 billion U.S. that was expected on Wall Street.

Broadcom said it had $4.40 billion U.S. in artificial intelligence (A.I.) revenue during the latest quarter.

Looking ahead, Broadcom said that it expects $5.10 billion U.S. in A.I. chip sales during the current quarter, adding that “hyperscale partners continue to invest.”

Hyperscale partners refers to companies that build large cloud systems such as Amazon (AMZN) and Microsoft (MSFT).

Sales to hyperscale partners are reported in Broadcom’s semiconductor solutions business unit, which had $8.40 billion U.S. in revenue during the quarter, a 17% increase from last year.

The software business, which includes VMware, grew 25% year-over-year to $6.60 billion U.S. in sales during the quarter.

Broadcom’s stock has risen 12% this year to trade at $259.93 U.S. per share.