Broadcom AI revenue surges in fiscal first quarter

Broadcom reported better-than-expected fiscal first quarter results due to strong demand for AI semiconductors.

The company reported first quarter net income of $7.35 billion, or $1.50 a share, on revenue of $19.31 billion, up 29% from a year ago. Non-GAAP earnings were $2.05 a share to top estimates by 3 cents a share.

In a statement, CEO Hock Tan said first quarter AI revenue was $8.4 billion, up 106% from a year ago. Demand was driven by custom AI accelerators and AI networking.

"Our AI revenue growth is accelerating, and we expect AI semiconductor revenue to be $10.7 billion in Q2," said Tan.

Semiconductor revenue in the quarter was $12.51 billion, or 65% of revenue. The infrastructure software unit, led by VMware, had revenue of $6.8 billion, up 1% from a year ago.

In the first quarter a year ago, Broadcom's chip division accounted for 55% of revenue.

As for the outlook, Broadcom projected second quarter revenue of about $22 billion with adjusted EBITDA about 68% of projected revenue.