Broadcom Sees 29% Q1 Revenue Growth, AI Sales Doubling to $8.2B
Broadcom forecasts first-quarter fiscal revenues of $19.1 billion versus a $19.27 billion consensus, implying 29.2% year-over-year growth and EPS of $2.03. The company expects AI revenues to double to $8.2 billion with an AI switch order backlog over $10 billion, while non-AI semiconductor sales remain flat year-over-year.
1. Q1 Guidance
Broadcom projects $19.1 billion in fiscal first-quarter revenue, a 29.2% year-over-year increase, and EPS of $2.03 per share. Semiconductor revenue is expected at $12.3 billion, infrastructure software at $6.8 billion, and non-AI semiconductor sales at $4.1 billion flat year-over-year.
2. AI and Product Drivers
AI revenue is set to double to $8.2 billion as demand for custom XPUs accelerates, backed by a $10 billion AI switch order backlog for Tomahawk 6. Networking products such as Jericho 4 routers and partnerships with hyperscalers including OpenAI, NVIDIA and Google bolster growth.
3. Valuation and Performance
Shares have risen 70.5% over the past year, outperforming the broader sector and peers, yet trade at a forward P/E of 27.7× versus the sector’s 25×. A higher global minimum tax rate and geographic mix shift pose margin risks despite robust top-line momentum.