Broadcom posts $22.2B revenue, lifts AI outlook, shares fall

Broadcom reported record quarterly revenue and issued sharply higher guidance for the current period, driven by what its chief executive described as "simply insatiable" demand for its artificial intelligence semiconductors. The company's stock fell in after-hours trading following the announcement.

For its fiscal second quarter, which ended May 3, Broadcom posted revenue of $22.2 billion, a 48% increase from the same period a year earlier. Adjusted earnings per share were $2.44. The company's AI semiconductor revenue reached a record $10.8 billion, surging 143% year-over-year and exceeding its prior outlook.

President and CEO Hock Tan said demand for AI chips continues to reshape the company's business. He noted that bookings for AI semiconductors during the quarter exceeded $30 billion, far above the $10.8 billion shipped. In response to that demand, Broadcom issued a significantly raised forecast for the current quarter.

For the fiscal third quarter, the company expects consolidated revenue of approximately $29.4 billion, which would represent an 84% year-over-year increase. Within that total, AI semiconductor revenue is projected to be $16 billion, more than double the figure...