Broadcom Sees $100B AI Chip Sales, Q1 Revenues Up 29% with $10B Buyback
Broadcom forecasted over $100 billion in next year AI chip sales as demand for custom silicon accelerates generational AI investment. Q1 revenue rose 29% to $19.31 billion with AI semiconductor sales up 106% to $8.4 billion, EPS rising 28% to $2.05, and Q2 AI chip sales guided at $10.7 billion.
1. Generational AI Investment
Broadcom’s CIO described current AI chip spending as the largest generational investment of his career, forecasting over $100 billion in AI chip sales next year as companies ramp specialized custom silicon for training, inference and automated agent systems.
2. Q1 Financial Results
In fiscal Q1, Broadcom delivered record revenue of $19.31 billion, up 29% year-over-year, driven by AI semiconductor sales surging 106% to $8.4 billion. Diluted EPS rose 28% to $2.05, outpacing consensus projections.
3. Q2 Outlook and Share Repurchase
For fiscal Q2, Broadcom guided AI semiconductor revenue to about $10.7 billion, a 140% increase year-over-year, and total sales of $22 billion, reflecting 47% growth. The board authorized an additional $10 billion share repurchase program through year-end to return capital to shareholders.