Broadcom’s AI Chip Revenue Rises 77%, Lifting Shares
**Broadcom’s AI Chip Revenue Rises 77%, Lifting Shares**
By Amir Efrati
7 minutes ago
Source: The Information
Broadcom said Thursday its revenue from designing and selling artificial intelligence server chips rose 77% to $4.1 billion in the quarter that ended in February 2 from the same period a year earlier. It projected $4.4 billion in such revenue in the current fiscal quarter, up 44% from a year earlier.
Nvidia last week posted 93% year-over-year growth in sales of its own AI server chips and networking gear. Nvidia's AI chip revenue is about 10 times bigger than that of Broadcom, which sells such chips to major firms such as Google, Apple, and OpenAI. Broadcom noted that in the past three months, two additional large technology firms started working with them to create custom AI chips.
The Broadcom results, which included a 28% increase in free cash flow to $6 billion in the February quarter, boosted shares more than 11% in after-hours trading. Its shares have been bumpy after rising nearly 40% following its last earnings report in December, when CEO Hock Tan said the AI chip business would generate tens of billions of dollars in revenue in the fiscal year that ends November 2027. He reaffirmed the projection in a call with analysts on Thursday.
Before Thursday's earnings report, shares had fallen to nearly the same level they traded at before the spike.