In This Article:
Broadcom (AVGO) shares jump in extended-hours trading after the chipmaker reported first quarter results that beat on top and bottom lines, driven by artificial intelligence (AI) chip sales. The move higher offers some relief as other chipmakers, like Marvell Technology (MRVL) and Nvidia (NVDA) closed Thursday's session in the red.
Adjusted earnings per share (EPS) came in at $1.60, higher than $1.50 Wall Street estimates, while adjusted net revenue sat at $14.92 billion, higher than the $14.61 billion expected. Broadcom's semiconductor solutions segment accounted for $8.21 billion of revenue. The chipmaker's guidance was also stronger than expected at $14.9 billion.
Market Domination Overtime co-hosts Julie Hyman and Josh Lipton break down the earnings print.
To watch more expert insights and analysis on the latest market action, check out more Market Domination Overtime here.
This post was written by Naomi Buchanan.
Breaking more earnings now from Broadcom. Shares rising on that company's latest results and a forecast that is ahead of estimates here. Uh, the company's first quarter adjusted earnings per share, a buck 60. That's 10 cents ahead of estimates and adjusted net revenue of 14.9 billion dollars also coming in ahead of estimates. That is up 25%. This is for its fiscal first quarter, by the way. And for its fiscal second quarter, Broadcom is predicting revenue of about 14.9 billion dollars. 14.6 billion is what the street had been looking for. Um, and the company is saying that not surprisingly here, AI is part of what's driving it. Hock Tan is the president and CEO, and he says that the numbers were driven by both AI semiconductor solutions and infrastructure software here, and he says, we expect continued strength in AI semiconductor revenue in the second quarter of 4.4 billion dollars. So in other words, um, it's accounting for a decent chunk of the revenue as hyperscale partners continue to invest in AI XPUs and connectivity solutions for AI data centers. So the shares, uh, pushing higher here and taking some of the other chip makers along with them.
Yeah, you know, Broadcom, we watch for those chips going to so many different import end markets. You just think, uh, wireless, networking, industrial. Um, this one, you know, we we had talked earlier, Joe, about chips had not been working. Um, Nvidia whacked, same with, um, Marvel and Broadcom as well. I mean, it was down about 20% year to date heading into this print, but, um, obviously investors at least initially here really like what they're seeing. We have the stock up about 7% in the after hours.
Yes, and of course, it's been selling off recently along with the other chip makers, as we've seen a little more shakiness in this AI trade. But, um, this going to at least in at first blush, we know things can change, but, uh, looks a little reassuring here.
