Broadcom sees Q3 revenue growth of 84%

Broadcom delivered a strong second quarter and said revenue growth will accelerate in the third quarter.

The chipmaker and enterprise software vendor reported second quarter earnings of $9.31 billion, or $1.91 a share, on revenue of $22.19 billion, up 48% from a year ago. Non-GAAP earnings were $2.44 a share.

Wall Street was looking for second quarter non-GAAP earnings of $2.40 a share on revenue of $22.07 billion.

For the third quarter, Broadcom projected revenue of $29.4 billion, up 84% from a year ago.

CEO Hock Tan said:

"Q2 semiconductor revenue from AI of $10.8 billion grew 143% year-over-year, above our forecast, driven by increasing demand for custom AI accelerators and AI networking. The momentum continues and in Q3 we expect semiconductor revenue from AI to grow over 200 percent year-over-year to $16 billion."

CFO Kirsten Spears said non-GAAP operating margins remain stable at 67% and will hold that level in the third quarter.

The company, which owns VMware, said its enterprise software revenue is now just 32% of revenue due to the success of AI chips.