Broadcom’s second-quarter revenue fell short of expectations, despite a 48% increase from $15 billion in the same quarter last year.
CEO Hock Tan told investors: “Broadcom achieved record revenue, operating profit and free cash flow in Q2 driven by accelerating growth in AI semiconductor revenue and strong operating leverage. Q2 semiconductor revenue from AI of $10.8 billion grew 143% year-over-year, above our forecast, driven by increasing demand for custom AI accelerators and AI networking. The momentum continues and in Q3 we expect semiconductor revenue from AI to grow over 200 percent year-over-year to $16.0 billion.”
Kirsten Spears, CFO of Broadcom Inc. commented: “Q2 consolidated revenue grew 48% year-over-year to a record $22.2 billion. Adjusted EBITDA increased 52% year-over-year to a record $15.2 billion, representing 69% of revenue. In Q3 we expect consolidated revenue growth to increase 84% year-over-year to $29.4 billion, with non-GAAP operating margin stable at 67% reflecting our strong operating leverage.”
Despite the downturn, the California-based company’s guidance for this quarter’s revenue exceeded expectations.
Broadcom shares fell 15% after the announcement.
Despite the drop in share price, Broadcom’s stock has increased by 40% so far this year.
By CEO NA Editorial Staff
