Broadcom’s stock saw a significant rise following the release of strong first-quarter earnings and optimistic guidance, fueled by persistent demand in the artificial intelligence (AI) sector.
Broadcom’s shares experienced a surge, climbing approximately 6% after the company unveiled robust financial results for the first quarter, along with guidance that signals ongoing demand for artificial intelligence solutions. The chipmaker reported adjusted earnings of $1.60 per share on revenue of $14.92 billion. This performance exceeded the expectations of analysts surveyed by LSEG, who had projected adjusted earnings of $1.49 per share and revenue of $14.61 billion. Revenue saw a substantial increase of 25% compared to $11.96 billion in the previous year.
Vivek Arya, an analyst at Bank of America, characterized Broadcom’s results as a “reassuring update from an AI leader” and a “positive read-across for AI sentiment.”
Broadcom has capitalized on the AI boom that has swept the financial market since the introduction of ChatGPT, with shares more than doubling in 2024. The stock has experienced a correction of around 19% since the beginning of 2025, as chipmakers reliant on components from outside the U.S. face potential tariff concerns under the administration of President Donald Trump.
Along with the strong first-quarter performance, Broadcom provided favorable guidance for the current period, anticipating revenue of $14.9 billion, surpassing the Wall Street forecast of $14.76 billion. Net income for the first quarter reached $5.5 billion, or $1.14 per share, a significant increase from $1.33 billion, or 28 cents per share, in the previous year.
“The [quarter] should provide some relief after the MRVL disappointment, and the optimism around the [serviceable addressable market], and the potential for customers 6 and 7 … will give confidence in the longer term growth profile,” wrote Morgan Stanley analyst Joseph Moore in a note.
Broadcom is well-known for creating infrastructure and connectivity solutions for data centers that form the foundation of large language models and advanced AI tools. The company announced in December that it was developing custom AI chips for three major cloud customers. CEO Hock Tan also stated that Broadcom is “deeply engaged” with two other hyperscalers and is working on custom chips with four additional potential customers.
The company’s AI revenues for the period increased by a substantial 77% compared to the previous year, reaching $4.1 billion. Tan projected that Broadcom’s AI semiconductor revenue would reach $4.4 billion this quarter. AI sales originate from the company’s semiconductor solutions business, which grew 11% year-over-year to $8.21 billion.
— CNBC’s Kif Leswing contributed reporting.
