Broadcom late Thursday delivered roughly in-line results for its fiscal fourth quarter, helped by strong sales of AI processors and networking chips. Its outlook also matched analyst estimates. Broadcom stock rose in extended trading.
The fabless chipmaker and infrastructure software provider earned an adjusted $1.42 a share on sales of $14.05 billion in the quarter ended Nov. 3. Analysts polled by FactSet had expected Broadcom to earn $1.39 a share on sales of $14.07 billion in its fiscal Q4. On a year-over-year basis, Broadcom's earnings rose 28% while sales increased 51%.
For the current quarter, the Palo Alto, Calif.-based company predicted sales of $14.6 billion, an increase of 22% from the prior-year period. Wall Street was modeling sales of $14.55 billion for the fiscal first quarter.
"Broadcom's fiscal year 2024 revenue grew 44% year over year to a record $51.6 billion, as infrastructure software revenue grew to $21.5 billion, on the successful integration of VMware," Chief Executive Hock Tan said in a news release.
He added, "Semiconductor revenue was a record $30.1 billion, driven by AI revenue of $12.2 billion. AI revenue, which grew 220% year on year, was driven by our leading AI XPUs and Ethernet networking portfolio."
Broadcom Stock Nearing Buy Point
Broadcom also raised its quarterly dividend by 11% to 59 cents a share for fiscal 2025.
In after-hours trading on the stock market today, Broadcom stock climbed over 1% to 183.68. During the regular session Thursday, Broadcom stock dipped 1.4% to close at 180.66.
Broadcom stock is in a double-bottom base with a buy point of 185.05, according to IBD MarketSurge charts.
Further, Broadcom is on the IBD Tech Leaders list.
Earlier this week, Broadcom stock surged on news reports that the chipmaker is designing an artificial-intelligence server processor for Apple.
Broadcom already makes custom AI server chips for Alphabet's Google, Facebook parent Meta Platforms and TikTok owner ByteDance. It also is making an AI inference chip for ChatGPT creator OpenAI.
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