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The Markets
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The Markets
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Hardware & electrical equipment

Broadcom shares rally as strong AI semiconductor sales growth drives earnings beat

Broadcom Inc (NASDAQ:AVGO, ETR:1YD) shares bounced back afterhours as the semiconductor designer and developer reported better-than-expected quarterly results.

After falling more than 6% during Thursday’s session amid a broader tech selloff, Broadcom stock gained almost 9% to about $195 afterhours following the release of its first quarter fiscal 2025 earnings report.

Broadcom posted earnings per share of $1.60, beating estimates of $1.51.

Revenue was a record $14.92 million, up 25% from the year-ago quarter and ahead of the Wall Street consensus of $14.59 billion.

AI revenue was up 77% year-over-year to $4.1 billion while software revenue was up 47% at $6.7 billion.

"We expect continued strength in AI semiconductor revenue of $4.4 billion in Q2, as hyperscale partners continue to invest in AI XPUs and connectivity solutions for AI data centers,” Broadcom CEO Hock Tan said in a statement.

The company expects total Q2 revenue of $14.9 billion, above estimates of $14.5 billion.

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