The company's infrastructure software division reported $5.82 billion in revenue for the quarter, nearly tripling from the previous year's $1.96 billion, partly due to the $69 billion acquisition of VMware. Broadcom expects first-quarter revenue to be around $14.6 billion, slightly above analyst estimates. The company also announced an 11% increase in its quarterly dividend for fiscal 2025, raising it to 59 cents per share. CEO Hock Tan highlighted the potential for massive growth in AI, with plans for each of the three large customers to deploy 1 million AI chips in networked clusters by 2027.
Key takeaways:
- Broadcom reported better-than-expected fourth-quarter earnings, with earnings per share of $1.42 versus the expected $1.38, and revenue of $14.05 billion versus the expected $14.09 billion.
- The company's AI revenue for the year more than tripled, reaching $12.2 billion, driven by demand from generative AI infrastructure and ethernet networking parts.
- Broadcom is developing custom AI chips with three large cloud customers, with plans to deploy 1 million AI chips in networked clusters by 2027, and sees a market opportunity worth $60 billion to $90 billion by then.
- The infrastructure software division's revenue nearly tripled to $5.82 billion, boosted by the $69 billion acquisition of VMware, and Broadcom plans to increase its quarterly dividend by 11% in fiscal 2025.