Broadcom’s stock moved higher in extended trading following the release of financial results and forward guidance that underscored the company’s positioning in the artificial intelligence sector. For the fiscal fourth quarter, the chipmaker reported revenue of $15.95 billion, representing 86% growth compared to the prior-year period. Net income climbed to $13.09 billion, or $2.68 per share, more than tripling from $4.14 billion, or 85 cents per share, in the year-ago quarter.
For fiscal 2027, management provided revenue guidance of $34.8 billion, which fell slightly short of the $35.03 billion consensus estimate tracked by LSEG. However, executives highlighted substantial expansion opportunities within the artificial intelligence market. The company disclosed plans to increase shipments of Google Ironwood tensor processing units to Anthropic and TPU 8i chips to Google. During the quarter, Broadcom also emphasized its custom Jalapeno chip developed in partnership with OpenAI, while announcing that Apple intends to expand spending on U.S. chip production with the company.
Chief Executive Officer Hock Tan articulated an ambitious growth trajectory for artificial intelligence revenue. The company projects doubling AI revenue to $115 billion in fiscal 2027, with a target to double again to $230 billion in fiscal 2028. Management indicated expectations to deliver tens of billions of dollars in annual processor sales to Google spanning several years. The company anticipates a 5-gigawatt deployment of TPU 8i chips at Anthropic in 2027, with visibility toward an additional 10 gigawatts, while projecting a 1.3-gigawatt Jalapeno deployment in 2027 with potential to exceed 5 gigawatts when accounting for second-generation variants.
Broadcom also disclosed that it may provide residual value guarantees that function as contingent liabilities to support artificial intelligence laboratories in bridging gaps between current cash flows and substantial upfront capital requirements. For fiscal 2028, the company projects earnings per share exceeding $30, above the $25.86 consensus among StreetAccount analysts. Semiconductor revenue climbed to $16.7 billion, surpassing the $15.2 billion average estimate, while infrastructure software generated $8.75 billion compared to consensus expectations of $8.82 billion.
Year-to-date through the previous trading session, Broadcom shares had advanced approximately 6%, underperforming the 12% gain recorded by the S&P 500 index during the same timeframe. Since the end of 2022, the company’s stock has risen more than sixfold, and its market capitalization has reached approximately $1.8 trillion.
Article Attribution | Read More at Article Source
Article summary produced by Claude AI