Broadcom’s Earnings Exceed Expectations on AI Revenue Growth [Video]

Broadcom (AVGO) reported fiscal fourth-quarter earnings that topped analysts’ expectations, sending shares higher in extended trading Thursday. 

The chipmaker saw fourth-quarter revenue grow 51% year-over-year to $14.05 billion, roughly in line with the analyst consensus compiled by Visible Alpha. Net income came in at $4.32 billion or 90 cents per share, up from $3.52 billion or 83 cents per share a year earlier, beating expectations. Broadcom underwent a 10-for-1 stock split in July.

The strong results come after Broadcom posted a loss of $1.88 billion last quarter, due in part to increased expenses related to its November 2023 acquisition of software company VMware. However, the integration helped boost Broadcom’s revenue to a record high for fiscal 2024.

“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,” CEO Hock Tan said in a release.

Tan also …