Broadcom (AVGO) Q4 2024 Earnings Report

Broadcom reported better-than-expected fourth-quarter results on Thursday and said annual artificial intelligence revenue more than tripled. The chipmaker’s shares rose in extended trading.

Here’s how Broadcom performed compared to LSEG consensus estimates for the quarter ended November 3:

• Earnings per share: $1.42, adjusted versus $1.38 expected
• Revenue: $14.05 billion versus expected $14.09 billion

Broadcom expects first-quarter revenue of about $14.6 billion, just above the average analyst estimate of $14.57 billion. In the fourth quarter, revenue rose 51% year-over-year to $9.3 billion.

Net income was $4.32 billion, or 90 cents per share, in the fourth quarter, up 23% from $3.52 billion, or 83 cents per share, in the year-ago quarter.

In the semiconductor solutions group, which includes the company’s artificial intelligence chips, revenue rose 12% to $8.23 billion from $8.03 billion a year ago.

Broadcom is seeing increasing demand due to the boom in generative AI infrastructure. For the year, the company reported that AI revenue rose 220% to $12.2 billion. Part of this growth is due to Ethernet network parts used to connect thousands of AI chips.

Broadcom said its infrastructure software division generated revenue of $5.82 billion in the quarter, nearly tripling from $1.96 billion a year earlier. This includes a boost from the $69 billion acquisition of VMware, which closed after the same quarter last year.

Broadcom said it will increase its quarterly dividend by 11% to 59 cents per share in fiscal 2025.