Broadcom beats expectations as AI labs double down on custom chips
Custom chipmaker Broadcom Inc. beat expectations on earnings and revenue in its third-quarter financial report and hinted at the prospect of doing more business with leading artificial intelligence labs.
However, its stock came under pressure in late trading after it issued a forecast for the current quarter that trailed Wall Street’s expectations.
The chipmaker reported adjusted earnings of $3,32 per share on sales of $29.59 billion in the quarter, up 86% from the $15.95 billion in revenue it posted in the same period last year. That was better than expected, with Wall Street analysts modeling earnings of just $3.24 per share and $29.36 billion in sales. The numbers had a massive impact on the company’s bottom line, with net rising by more than triple to $13.09 billion, from just $4.14 billion a year earlier.
Broadcom’s semiconductor business unit provided the lion’s share of its revenue, with sales there tripling from a year earlier to $16.7 billion, surpassing the Street’s $15.2 billion target. The infrastructure business added $8.75 billion in sales, just below the $8.82 billion consensus estimate.
