Broadcom (AVGO) has reported strong fiscal fourth-quarter financial results and issued a bullish forecast for the current quarter as sales of its artificial intelligence (A.I.) microchips accelerate.
The Silicon Valley-based company reported earnings per share (EPS) of $1.95 U.S., which topped the $1.86 U.S. expected on Wall Street.
Revenue in the period totaled $18.02 billion U.S., which was ahead of the $17.49 billion U.S. estimated among analysts.
Along with Nvidia (NVDA), Broadcom has been the other major winner among U.S. semiconductor companies from the A.I. boom.
Broadcom’s custom chips, such as Google’s (GOOGL) tensor processing units (TPUs), are gaining traction in the market as a rival to Nvidia’s graphics processing units (GPUs).
Looking ahead, Broadcom CEO Hock Tan said that the company expects it’s A.I. chips sales this quarter to double from a year earlier to $8.2 billion U.S. as demand continues to soar.
Total revenue this quarter is forecast to be $19.1 billion U.S., which would represent 28% year-over-year growth, and is higher than the $18.3 billion U.S. expected on Wall Street.
CEO Tan added that Broadcom has a $73 billion U.S. backlog for its custom microchips, switches, and other A.I.-related products over the next 18 months.
The company’s A.I. chip sales increased 74% in the just completed quarter.
The A.I. microchip sales are reported in the company’s semiconductor solutions business, which reported $11.07 billion U.S. in sales, beating consensus estimates for $10.77 billion U.S.
Broadcom’s other major segment, infrastructure software, reported $6.94 billion U.S. in sales, also topping Wall Street’s expectations.
Management raised Broadcom’s quarterly dividend by 10% to $0.65 U.S. per share, up from $0.59 U.S. previously.
AVGO stock has gained 75% this year to trade at $406.37 U.S. per share.
