Broadcom shares rise as AI growth powers strong guidance

Broadcom shares rose about 6% after the company posted strong first-quarter earnings and guidance that signaled ongoing artificial intelligence demand.

The chipmaker posted adjusted earnings of $1.60 per share on $14.92 billion in revenue. That surpassed the adjusted earnings of $1.49 per share and $14.61 billion in revenue expected by analysts polled by LSEG. Revenues rose 25% from $11.96 billion a year ago.

Bank of America analyst Vivek Arya called the results from Broadcom a “reassuring update from an AI leader” and a “positive read-across for AI sentiment.”

Broadcom has benefited from the AI boom that has swept Wall Street since the launch of ChatGPT, with shares more than doubling in 2024. The stock has pulled back about 19% since the start of 2025 as chipmakers reliant on parts outside the U.S. face tariff fears under President Donald Trump’s administration.

The results offered a reprieve for an industry that has faced a tough bar to clear this earnings season. Popular names have slumped post-results even after topping estimates. Marvell Technology was the latest example, falling 20% Thursday for its steepest drop since 2001 after missing some elevated buyside estimates.

Along with the first-quarter beat, Broadcom offered upbeat guidance for the current period, calling for revenue of $14.9 billion. That topped a $14.76 billion forecast from Wall Street. Net income during the first quarter rose to $5.5 billion, or $1.14 per share, up from $1.33 billion, or 28 cents per share, a year ago.

“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 underpinning large language models and advanced AI tools. The company said in December that it was developing custom AI chips for three large cloud customers. CEO Hock Tan also said Thursday that Broadcom has “deeply engaged” with two other hyperscalers, and is working to create custom chips with four other possible customers.

The company’s AI revenues for the period grew 77% from a year ago to $4.1 billion. Tan said Broadcom expects AI semiconductor revenue to reach $4.4 billion this quarter. AI sales stem from the company’s semiconductor solutions business, which grew 11% from a year ago to $8.21 billion.

— CNBC’s Kif Leswing contributed reporting.