Broadcom Guides Q2 Revenue to ~$22B with AI Semis Growing 140%
Broadcom’s Semiconductor Solutions segment posted Q1 revenue of $12.5B, led by AI semis at $8.4B (+106% YoY), driving consolidated revenue up 29% to $19.3B and a 66.4% operating margin. It guided Q2 revenue of ~$22B, expects AI semis at $10.7B (+140% YoY) and approved an additional $10B buyback.
1. Q1 Financial Results
Broadcom delivered record fiscal Q1 revenue of $19.3B, up 29% year-over-year, with its Semiconductor Solutions segment generating $12.5B (+52% YoY), a gross margin of 77% and operating income of $12.8B, resulting in a 66.4% operating margin.
2. Q2 Guidance and Buyback
Management issued guidance for approximately $22B in Q2 revenue, including $10.7B in AI semiconductor sales (+140% YoY), and authorized an additional $10B share repurchase program following $7.8B in prior buybacks and $3.1B in dividends.
3. AI Semiconductor and Networking Momentum
AI semiconductor revenue rose 106% year-over-year to $8.4B in Q1, while AI networking sales grew 60% and are expected to represent 40% of AI revenue in Q2, as customer ramps at Google, Anthropic, Meta, OpenAI and others support a path to over $100B of AI silicon in 2027.
4. Software, Non-AI, and Cash Flow
Infrastructure Software revenue reached $6.8B (+1% YoY) with VMware bookings exceeding $9.2B and ARR growth of 19%, while non-AI semiconductor revenue held at $4.1B. Broadcom generated $8B in free cash flow (41% of sales), ended Q1 with $14.2B in cash, and secured key supply components through 2028.