Broadcom 2Q Sales Climb on Booming AI Demand

By Katherine Hamilton

Broadcom posted higher profit and sales in its fiscal second quarter as artificial intelligence demand continues to drive revenue growth.

The maker of semiconductors and software on Thursday posted a profit of $4.97 billion, or $1.03 a share, in the quarter ended May 5, compared with $2.12 billion, or 44 cents a share, a year earlier.

Stripping out certain one-time items, adjusted per-share earnings were $1.58, just ahead of the $1.57 forecast by analysts, according to FactSet.

Revenue rose 20% to $15.00 billion. Analysts surveyed by FactSet forecast revenue of $14.96 billion.

Sales from the AI industry climbed 46% to $4.4 billion, thanks to demand for AI networking as hyperscalers continue to invest, Chief Executive Hock Tan said. Broadcom is expecting AI semiconductor revenue will be $5.1 billion in the third quarter, which would be the 10th consecutive quarter of growth in that segment.

Third-quarter revenue is expected to be $15.8 billion, in line with analysts' projection.

Write to Katherine Hamilton at [e-mail]

(END) Dow Jones Newswires

06-05-25 1645ET