Broadcom Surpasses Analyst Expectations with Strong Earnings, Q1 Projections Also Exceed Estimates

Broadcom reported financial results for the fourth quarter that exceeded analysts' expectations. The chip manufacturer announced that its fourth-quarter revenue rose to $14.05 billion, marking a 51% increase compared to the previous year. Net income was $4.32 billion or $0.90 per share, surpassing expectations, compared to $3.52 billion or $0.83 per share in the previous year. Adjusted earnings per share, taking into account one-time gains and costs, were $1.42, while analysts had an average estimate of $1.39 per share.

Broadcom anticipates an increase in demand for specialized artificial intelligence chips over the next few years. Following CEO Hock Tan's comments during a conference call with investors, where he indicated that the company expects a revenue opportunity of between $60 billion and $90 billion from AI in fiscal year 2027, the company's shares rose by 14% in after-hours trading. Broadcom Inc. shares have increased by 62% since the beginning of the year.

The company expects to generate approximately $14.6 billion in revenue for the first quarter, compared to analysts' average estimate of $14.57 billion.