CEO Hock Tan attributed the record revenue to investments by hyperscale partners in AI accelerators and connectivity solutions for AI data centers. The semiconductor solutions segment generated $8.2 billion, while the infrastructure software segment, including VMware offerings, contributed $6.7 billion. Tan noted that the company's top customers are investing heavily in AI models, aiming to build large AI chip clusters by 2027. Additionally, Broadcom is considering using Intel's 18A manufacturing process for its chip production, potentially placing significant orders with Intel's struggling contract manufacturing business.
Key takeaways:
- Broadcom Inc. reported better-than-expected first-quarter earnings, with a 25% increase in revenue driven by strong demand for AI chips.
- The company's stock surged more than 12% after-hours following the positive earnings report and strong guidance for the second quarter.
- Broadcom's semiconductor solutions segment generated $8.2 billion in revenue, while its infrastructure software segment added $6.7 billion.
- Broadcom is considering placing significant orders with Intel's chip fab business, which would be a major win for Intel's struggling contract manufacturing division.