Broadcom Posts Strong Earnings Amid AI Demand Surge

PALO ALTO, California — Broadcom Inc. reported a substantial increase in its revenue for the latest fiscal quarter, driven by a surge in demand for AI semiconductor solutions and its VMware offerings. On Dec. 12, the company disclosed a remarkable 51.2% year-over-year revenue growth, totaling $14.1 billion.

Broadcom’s impressive performance stands out in a competitive technology landscape, especially as it has outshone the broader S&P 500 index over the past year. According to stock market data, while Broadcom shares have risen 1.3% year-to-date, the S&P 500 index has gained 2.7% during the same period.

Much of this growth can be attributed to the increasing demands for AI-related products. AI revenue specifically skyrocketed 150%, driven by sales of custom AI accelerators (XPUs) and enhanced networking solutions. The company’s robust guidance for the first quarter of 2025 also inspired investor confidence, forecasting projected revenues of approximately $14.6 billion and a substantial 65% growth in AI sector sales.

The appetite for AI infrastructure supports not only Broadcom’s growth but also reflects a larger trend in the tech industry. Alphabet has projected $75 billion in capital expenditures for 2025, indicating persistent demand for AI technologies, which include Broadcom’s advanced custom AI application-specific integrated circuits (ASICs).

Despite the promising outlook for Broadcom, market apprehensions arose following the release of DeepSeek’s low-budget AI model, prompting discussions on whether future AI developments might require less computational power than previously thought. Nevertheless, Broadcom seems well-positioned to capitalize on these emerging opportunities.

Analysts project that by the close of the current fiscal year, ending in October 2025, Broadcom’s earnings per share will reach $5.38. According to a survey of 33 analysts covering the stock, Broadcom holds a consensus rating classified as “Strong Buy