Broadcom shares surge 16% after strong Q1 results

Broadcom Inc. reported fiscal first-quarter 2025 results on Thursday, March 6, that beat analysts’ expectations, and the chipmaker provided strong guidance for the current quarter.

-Fiscal first-quarter earnings per share: $1.60, adjusted, versus $1.49 expected by LSEG.

-First-quarter revenue: $14.92 billion versus $14.61 billion expected by LSEG.

Broadcom said it expects about $14.9 billion in second-quarter revenue, which was higher than Wall Street analysts’ expectations of $14.76 billion. Revenue in the fourth quarter was up 25% from $11.96 billion in fiscal first-quarter 2024, according to CNBC.

The company said net income rose to $5.5 billion, or $1.14 per share, in the first quarter of fiscal 2025, compared with $1.33 billion, or 28 cents per share, in the year-ago period.

The company’s shares rose 16% in after-hours trading.

Broadcom’s AI business is at the heart of the company’s recent surge, which has seen its stock price more than double in the past year. The company is a major supplier of infrastructure for AI data centers, working on both Google’s custom AI chips and providing the core components that connect thousands of other chips together to develop advanced AI programs.

Before the stock surge, it had fallen about 23% since the start of 2025, as investors have been moving away from risk in part due to concerns about President Donald Trump’s tariffs.

Broadcom said it reported $4.1 billion in AI revenue in the first quarter, up 77% year over year. The sales are reported as part of Broadcom’s semiconductor solutions business, which grew 11% year over year to $8.21 billion during the quarter.

Broadcom CEO Hock Tan said in a statement that the company expects “continued strength in AI semiconductor revenue,” which is estimated to reach $4.4 billion in the second quarter.

In December, Broadcom said it was developing custom AI chips with three major cloud computing customers.

The other major part of Broadcom’s revenue comes from its infrastructure software division, following the company’s acquisition of VMware in the fourth quarter of fiscal 2023. Broadcom said it saw software sales of $6.7 billion during the quarter, up 47% year over year.