The chip group Broadcom was able to exceed the expectations of the analysts for the first quarter of the 2025 financial year. The group also gave a strong outlook. The AI area in particular continues to turn out to be an important growth driver.
• Broadcom quarterly figures on expectations
• Outlook promises further growth
• won new customers
Broadcom recorded a record sales of $ 14.92 billion in the first quarter of 2025-an increase of 25 percent compared to the previous year ($ 11.96 billion). The analyst estimates of $ 14.61 billion were thus exceeded. In addition, the net profit of the chip group developed particularly strongly, which now shot up to $ 5.5 billion from $ 1.33 billion. The adjusted profit per share was $ 1.60 and was therefore $ 1.49 from analysts. Broadcom also showed an adjusted operational margin of 68 percent.
A crucial growth driver for Broadcom remains the artificial intelligence area: Broadcom’s AI turnover was $ 4.1 billion in the reporting period, an increase of $ 77 percent compared to the previous year. Overall, the business with semiconductor solutions, which also includes AI sales, grew by eleven percent in the first quarter to $ 8.21 billion. In addition, the software business also shows a strong development: sales with infrastructure software rose by 47 percent to $ 6.7 billion per year.
Broadcom provides a convincing outlook: AI boom drives further growth
Broadcom is also confident in the current second quarter and is expecting an increase in sales of around 20 percent to around $ 14.9 billion. According to the “CNBC”, this value is also above the analyst forecasts, which expect sales of $ 14.76 billion in the current annual quarter. In addition, two thirds of the sales are said to remain with the company as a special effects that are adjusted for special effects.
Broadcom also remains optimistic about his AI business. CEO Hock Tan said in a press release: “We expect a persistently strong turnover of sales for AI helicopters of $ 4.4 billion in the second quarter, since hyperscale partners continue to invest in AI xpus and connectivity solutions for AI data centers”. This would again be a clear plus compared to the $ 4.1 billion from the first quarter.
Broadcom should continue to benefit from its strong position as a provider of data center infrastructures for AI, as in the recently concluded quarter. The company is working on Google’s custom AI chips and on providing components for the networking of high-performance chips for AI development. Broadcom already announced in December that three large cloud customers were working on individual AI chips, but now the company was apparently able to win other customers. As “CNBC” reports, Broadcom-CEO TAN said as part of the number template that “work intensively with two other hyperscalers” and that four other potential customers are working on the development of their own customer-specific AI chips.
This is how the Broadcom share reacts
In investors, numbers and outlook as well as the statements of the Broadcom CEO are extremely well received: in retail on Nasdasq, they increase the Broadcom share on Thursday by 3 percent to $ 184.84.
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