Broadcom's semiconductor division reported a 12% increase in revenue to $8.23 billion in the fourth quarter, while software sales surged nearly 200% to $5.82 billion, partly due to its acquisition of VMware Inc. for approximately $69 billion. Despite concerns about weaker demand for its chip design business, Broadcom remains a key supplier for Apple Inc., although Apple is gradually replacing some Broadcom components with in-house versions. CEO Hock Tan emphasized the company's ongoing engagement with Apple and openness to future acquisitions as part of its long-term strategy.
Key takeaways:
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- Broadcom Inc. reached a $1 trillion market valuation for the first time, driven by a surge in demand for its AI chips and a 65% increase in AI product sales in the fiscal first quarter.
- The company predicts the addressable market for AI components it designs for data center operators will reach up to $90 billion by fiscal 2027.
- Broadcom's semiconductor division saw a 12% increase in revenue, while its software sales grew nearly 200%, partly due to the acquisition of VMware Inc.
- Despite concerns about weaker demand for some chip designs, Broadcom remains engaged with Apple and is open to future acquisitions as part of its long-term strategy.