Broadcom Inc. (AVGO) announced impressive third-quarter financial results, surpassing analyst estimates. The company reported revenue of $13.072 billion, exceeding the predicted $12.96 billion, and earnings per share of $1.24, surpassing the projected $1.20. This marks a significant 42% year-over-year increase in total revenue. Broadcom’s strong performance was driven by its AI semiconductor solutions, particularly in Ethernet networking and custom accelerators for AI data centers. The company generated a robust $4.963 billion in cash from operations and $4.791 billion in free cash flow during the quarter, ending with $9.952 billion in cash and cash equivalents. “Broadcom’s third-quarter results reflect continued strength in our AI semiconductor solutions and VMware. We expect revenue from AI to be $12 billion for fiscal year 2024 driven by Ethernet networking and custom accelerators for AI data centers,” said Hock Tan, president and CEO of Broadcom. Looking ahead, Broadcom anticipates fourth-quarter revenue of approximately $14 billion and an adjusted EBITDA of roughly 64% of projected revenue. The company’s board approved a quarterly cash dividend of 53 cents per share, payable on Sept. 30 to shareholders of record as of Sept. 19. In after-hours trading, Broadcom shares experienced a decline of 3.97%, trading at $146.75. Broadcom’s strong performance and outlook underscore the growing importance of AI in the technology landscape. The company’s focus on AI semiconductor solutions positions it for continued success in the evolving market.
